Plenty has been said about the swift falls experienced on ASX over the month of September particularly the fact that the losses have completely wiped out the 2014 calendar year gains for the S&P/ASX 200 (INDEXASX: XJO).
The losses have surprised some market participants while at the same time confirming the views of others. For all the crystal ball gazing, there is really only one thing which matters – has the heightened volatility created any appealing opportunities?
Here are four stocks which have just hit new 52-week lows that in my opinion are starting to look interesting…
ERM Power Ltd (ASX: EPW) operates an interesting suite of assets and continues to look appealing yet the stock is trading down nearly 34% to a new 52-week low of $1.66. The company's electricity generation capabilities are a unique service, making the stock's new lows – which puts it on an undemanding multiple – rather interesting.
Southern Cross Media Group Ltd (ASX: SXL) is not trading at the lows hit during the GFC but it still hasn't been a pleasant ride for investors – the shares are down 80% since listing in 2006. Although debt levels are high which could be cause for concern, at current price levels the stock is beginning to look attractively priced.
Ten Network Holdings Limited's (ASX: TEN) share price has fallen to 23 cents which is not only a one-year low but also a decade low! That makes for a terrible decade for long-term shareholders with the stock down a massive 93%. Despite the weak outlook for free-to-air television, Ten Network appears to be attracting potential suitors if the rumour mill is to be believed. Given the beaten-up share price and potential synergies to be extracted from a tie-up with a media sector peer, the odds look reasonable for an "event" to occur which could see shareholders receive a price above current levels.
Crown Resorts Ltd (ASX: CWN) has lost some of its lustre since winning the right to develop a casino in Sydney but the group still owns a number of appealing assets throughout Australia as well as offering exposure to overseas casino locations including Macau. The stock price is down 12.6% in the last 52 weeks, but still up 61.2% in the past five years.
Risk vs. Reward
These four stocks aren't without further downside risk, particularly share price falls. At current pricing however there also looks to be reasonable upside potential which makes them all interesting on a risk versus reward basis.
