The Xero Limited (ASX: XRO) share price may have raced away to a multi-year high, but not all shares on the local market have been so fortunate today.
Three shares which have hit 52-week lows this morning are listed below. Here's why they are down in the dumps:
The Amcor Limited (ASX: AMC) share price has fallen to a 52-week low of $13.39 this morning. The packaging company's shares have come under heavy selling pressure this year after a weak first-half result. Amcor's results were weighed down by higher raw material costs and low beverage volumes in North America and continued weakness in its Latin America business. Furthermore, recent merger and acquisition activity indicates that deals are being done with future returns far below Amcor's hurdle rate. This has many in the market concerned that Amcor may be unable to bolster its growth through acquisitions any time soon. While its shares do look to be better value now, I'd suggest investors stay clear until there is a notable improvement in its performance.
The Gateway Lifestyle Group (ASX: GTY) share price plunged 12% lower to a 52-week low of $1.73 today after the residential park developer downgraded its guidance. Due to moderating conditions in the housing market and the lengthening of the time it takes to sell homes, Gateway has seen a slowdown in settlements. As a result, it now expects new home settlements in a range of 230 to 240, compared to previous guidance of around 250 settlements for the full year. Considering the state of the housing market at the moment, I am a little concerned that this could be an ongoing problem for Gateway Lifestyle.
The iSentia Group Ltd (ASX: ISD) share price has continued to slide lower and touched on a new 52-week low of 78.5 cents today. While this decline leaves the media monitoring company's shares trading at a lowly 8x trailing earnings, I wouldn't be in a rush to invest. Although its disastrous content marketing adventure is behind it now, the company's core business has started to show signs of significant weakness. Ultimately, I fear its shares will prove to be a value trap in time.
