Considering the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) fell sharply yesterday, it will come as little surprise to learn that a number of ASX shares fell to 52-week lows.
Three which caught my eye are listed below. Will they bounce back?
The Mayne Pharma Group Ltd (ASX: MYX) share price fell to a 52-week low of $1.04 on Thursday. Allegations of price-fixing and concerns that the Trump administration will slash the price of generic drugs have weighed heavily on the pharmaceutical company's shares. So much so its shares have now halved in value since August of last year. Whilst I'm a huge fan of the company and believe it could prove to be a bargain buy, investors may be best off waiting until Trump's policies on generic drugs are fully understood. Especially considering that short sellers are taking an interest in the company.
The Reject Shop Ltd (ASX: TRS) share price tumbled to a 52-week low of $3.36 yesterday. This latest decline means the struggling retailer's shares have fallen almost 60% year-to-date. The catalyst for this decline has been a market update in April which revealed that trading conditions have continued to deteriorate. If conditions remain as they are, then the company expects to post a second-half loss of $5 million. With both Aldi and Amazon threatening to steal market share away from the discount retailer, I believe things could still get worse from here unfortunately. In light of this I would suggest investors stay clear of the retailer despite how cheap it looks.
The Sirtex Medical Limited (ASX: SRX) share price was smashed on Thursday and dropped to a multi-year low of $10.45 following the release of its FOXFIRE clinical trial results. The trial was conducted to study the effectiveness of its selective internal radiation therapy as a first-line treatment for patients with liver metastases from colorectal cancer. Unfortunately the results showed no signs of improvement in overall survival times in patients. This is just the latest in a series of disappointing updates from the company. Whilst things may improve and Sirtex could rebound strongly, I don't think it is worth taking the risk when there are far better options for investors in the healthcare sector.
