The Southern Cross Media Group Ltd (ASX: SXL) share priced closed at a 52-week low on Monday ahead of its half-year results release on Thursday, 20 February.
The Aussie media group's shares slumped even lower today, down 2.60% to $0.75 per share despite no market-moving announcements.
Why did Southern Cross Media shares slump on Tuesday?
While there were no announcements, momentum can be a huge factor in valuations.
The Southern Cross Media share price has been on the slide for some time now and is down 35.34% in the last 12 months.
Media is a tough market at the moment with significant consolidation and lower margins. That led Southern Cross to downgrade its guidance in October 2019 which sent the group's shares crashing lower.
The group announced an 8.5% slump in quarterly revenue while flagging lower capital expenditure for FY 2019. Southern Cross also lowered its earnings before interest, tax, depreciation and amortisation (EBITDA) estimate to a $60 million to $68 million range for the half-year ended 31 December 2019.
Investors will get a good look at Southern Cross financials on Thursday when the group releases its results. Given today's slump, it doesn't look like there's a lot of optimism around those numbers.
Are Southern Cross Media shares good value?
Whenever there is a big sell-off in ASX shares, I think there are potential buying opportunities. Given the group's share price closed at a 52-week low yesterday, Southern Cross could be worth a second look.
I personally am not bullish on the media sector. If there are two areas where Aussie corporates look like they'll struggle, it's retail and media.
However, that's not to say there's no value to be had in the sector. There's always the chance for strong gains on the back of consolidation activity.
If there's a big fish like News Corp (ASX: NWS) or Seven West Media Ltd (ASX: SWM) looking for a buying opportunity, Southern Cross Media shares could be in the frame.
However, betting on mergers and acquisitions is not for the faint-hearted investor.
Foolish takeaway
While Southern Cross Media shares have slumped lower, the bullish market we're in is good for ASX investors.
I'd personally take a look at Harvey Norman Holdings Limited (ASX: HVN) or these 3 ASX dividend shares for extra yield in 2020.
