The Australian share market may have pushed notably higher yesterday, but not all shares were able to follow suit.
Some shares even sank to 52-week lows or worse on Wednesday. Are they in the bargain bin now?
The Apollo Tourism & Leisure Ltd (ASX: ATL) share price fell to a 52-week low of $1.35 on Wednesday. It has been quite a fall from grace for the vertically integrated manufacturer, rental fleet operator, wholesaler, and retailer of a broad range of RVs. Just six months ago its shares were at all-time high, but have been tumbling lower since it announced the acquisition of the Coromal and Windsor Caravan brands from Fleetwood Corporation Limited (ASX: FWD). These businesses had previously been a major drag on Fleetwood's performance. I think Apollo Tourism & Leisure's shares do look good value now, but I would like to see how the acquired businesses are performing before picking up shares.
The Estia Health Ltd (ASX: EHE) share price tumbled to a 52-week low of $2.36 yesterday as investors continue to ditch the aged care operators following the announcement of a Royal Commission. Although its shares look dirt cheap on paper, I wouldn't be a buyer of them until after the Commission has taken place. As we have seen with the likes of AMP Limited (ASX: AMP) and the company listed below, such inquiries can drag even cheap-looking shares significantly lower.
The Freedom Insurance Group Ltd (ASX: FIG) share price continued its decline and hit an all-time low of 9.4 cents on Wednesday. Shareholders have been hitting the sell button in a hurry after the insurance seller's poor practices were brought to light at the financial services Royal Commission. While Freedom may potentially be able to reinvent itself, I feel the brand damage and forced changes to its business model have put it in a precarious position. In light of this, I don't believe it is anywhere near investment grade.
