Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to carve out a gain of 5.7% in the last 12 months, not all shares on the share market have been able to follow the index higher.
In fact, the three shares below have just hit 52-week lows. Are they bargain buys now?
The Cash Converters International Ltd (ASX: CCV) share price fell to a 52-week low of 24.5 cents during trade today. This means the shares of the franchisor of second hand goods and financial services stores have fallen 29% year-to-date. While there has been no news out of the retailer for some time, I would suggest that the weak performance of rival Thorn Group Ltd (ASX: TGA) is a sign that business is unlikely to be booming for Cash Converters.
The Greencross Limited (ASX: GXL) share price tumbled to a 52-week low of $5.64 today. Concerns over the weak retail environment and the potential impact Amazon will have on its business appear to be behind this decline. Whilst the retail side of its business is potentially open to be disrupted by the retail behemoth, its veterinary business is certainly safe. Because of this I think its decision to launch in-store clinics is a smart move and could lessen Amazon's impact. At the current share price I think Greencross could be a great option for investors.
The Sundance Energy Australia Ltd (ASX: SEA) share price has dropped to a 52-week low of 6.9 cents this afternoon. Despite the best efforts of OPEC to reduce oil output and increase prices, I think oil prices look set to stay in or around US$50 a barrel for the foreseeable future. I believe this is likely to reduce the oil and gas producer's profitability and weigh heavily on its shares. Like rival Santos Ltd (ASX: STO), I feel Sundance Energy is best avoided at this point.
