With the market sinking notably lower on Wednesday it will come as no surprise to learn that a number of shares dropped deep into the red.
Three shares that tumbled to 52-week lows are listed below. Are these beaten down shares in the bargain bin?
The Pendal Group Ltd (ASX: PDL) share price fell to a 52-week low of $8.94 on Wednesday. Investors have been heading to the exits in their droves after the fund manager, formerly known as BT Investment Management, released its latest funds under management update. As well as coming under pressure from the weak update, Westpac Banking Corp (ASX: WBC) could be in the market selling its remaining stake. When the dust settles I think there could potentially be a buying opportunity, but I would wait for confirmation that the banking giant has offloaded its holding first.
The Reckon Limited (ASX: RKN) share price continued its decline and touched on a 52-week low of 90 cents yesterday. This accounting software company has seen its shares fall a massive 43% since the turn of the year after the takeover by MYOB Group Ltd (ASX: MYO) was blocked by the ACCC. Unfortunately, I can't see Reckon successfully competing with its larger rivals in the highly competitive market. Because of this, I don't expect to see a recovery in its share price any time soon.
The SKY and Space Global Ltd (ASX: SAS) share price finished the day at a 52-week low of 7.8 cents on Wednesday. Although the satellite company has announced a number of promising memorandum of understandings recently, investors appear to be wisely waiting to see if they turn into fully fledged contracts before acting on them. While I think SKY and Space Global has created a very excited technology, its market capitalisation is already pricing in a lot of success that is far from guaranteed. One to watch, but not one to buy just yet in my opinion.
