Should you buy these beaten down ASX shares?

The Nextdc Ltd (ASX:NXT) share price is one of three that tumbled lower in July. Is it time to invest?

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Yesterday I took a quick look at a number of shares that smashed the market in July.

Today I thought I would take a look at the companies that struggled during the month to see if there's an opportunity to invest.

Here are three of July's worst performers:

The Myer Holdings Ltd (ASX: MYR) share price tumbled 9% last month after the department store operator downgraded its profit forecast. Myer's shares hit a multi-year low of 77 cents after it advised that it was likely to miss its FY 2017 net profit forecast of more than $69.3 million. Instead, profit is expected to be in the range of $66 million and $70 million following weaker-than-expected trading conditions during its June-July stocktake sales events. Whilst its shares do look dirt cheap, I feel Myer is operating in an increasingly difficult space which may still get worse before it gets better.

The Nextdc Ltd (ASX: NXT) share price fell 9% in July after the data centre operator battled it out for ownership of Asia Pacific Data Centre Group (ASX: AJD) with 360 Capital Group Ltd (ASX: TGP). NextDC, which is a long-term tenant of Asia Pacific Data Centre, is aiming to acquire the REIT in order to stop major shareholder 360 Capital from making changes to its management team. Whilst I would have preferred to see capital deployed elsewhere, keeping the assets out of the hands of 360 Capital could be the smart thing to do. Overall, I feel this could be an opportune time to buy NextDC shares at a cheaper price.

The Orocobre Limited (ASX: ORE) share price fell 8% in July as the market became increasingly bearish on the lithium miner. At the end of June, operations and logistics at its Olaroz Lithium Facility and Borax Argentina site were negatively impacted by severe weather. This led to yet another production downgrade and appeared to be the final straw for many investors. Orocobre's shares have now lost 28% of their value since the start of the year and are the most shorted shares on the Australian share market. Whilst I am bullish on lithium, I think there are far better options for investors to gain exposure to the in-demand metal.

Motley Fool contributor James Mickleboro owns shares of NextDC Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

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