The Motley Fool

Why AMP and these ASX shares just sank to 52-week lows

Last week the S&P/ASX 200 index had a week to forget, falling 2.7% due to trade war and U.S. recession concerns.

Whilst a good number of shares tumbled lower, some fell more than most. Here’s why the three shares listed below ended up sinking to 52-week lows:

The AMP Limited (ASX: AMP) share price tumbled to a multi-year low of $1.71 on Friday. The embattled financial services company’s shares have come under significant pressure over the last 12 months due to the negative impacts of its appearance at the Royal Commission and the subsequent fund outflows it has experienced. In addition to this, the company recently conducted a highly dilutive $650 million capital raising in order to fund its turnaround. Those funds were raised at $1.60 per share, which was a 10% discount to its 5-day VWAP. Whilst things are arguably looking a lot better for the company now it has raised these funds, I wouldn’t be in a rush to invest just yet. Instead, I would suggest investors wait to see if its turnaround succeeds before parting with your money.

The Blackmores Limited (ASX: BKL) share price continued its slide and hit a multi-year low of $66.50 at the end of last week. Investors headed to the exits in their droves last week after the health supplements company’s full year result fell short of even the market’s lowest expectations. Blackmores posted a 24% decline in full year net profit after tax to $53 million due largely to weakness in the key China market. Furthermore, management warned that trading conditions remain tough and that the first half of FY 2020 is expected to be weaker than the prior corresponding period. Whilst I’m not a fan of the company, I do think that value is emerging after this sharp share price decline.

The Oil Search Limited (ASX: OSH) share price dropped to a 52-week low of $6.30 on Friday. As well as weakness in oil prices weighing on its shares, investors continue to be cautious on the energy producer due to developments in Papua New Guinea. The country’s new government has not yet signed off on the P’nyang Gas Agreement and appear to be taking a very tough stance. I think its shares have been oversold now, but it might be prudent to wait for the PNG saga to conclude before considering an investment.

Instead of Oil Search, I would be buying one of these shares which have much stronger outlooks.

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.