On Wednesday the Australian share market may have rebounded higher, but the same cannot be said for the shares listed below.
During yesterday's trade they fell to 52-week lows or worse. Are these beaten down shares in the buy zone now?
The Estia Health Ltd (ASX: EHE) share price fell to a 52-week low of $2.30 on Wednesday. Shareholders have continued to head to the exits in their droves since the government announced plans for a Royal Commission into the aged care sector. Considering the damage the financial services inquiry has done to the banks and companies such as AMP Limited (ASX: AMP) and Freedom Insurance Group Ltd (ASX: FIG), I can't say I'm surprised by the selling. While this may one day prove to be a buying opportunity, I think investors should stay well clear of Estia Health and its peers.
The GBST Holdings Limited (ASX: GBT) share price touched on a 52-week low of $1.72 yesterday. The shares of this specialist financial technology company have come under significant pressure since the release of a disappointing full year result. GBST posted flat revenue of $88.3 million and a 22% decline in adjusted net profit after tax to $8.2 million. The loss of a major client by two of its key segments was the reason behind the poor performance. Unfortunately, investors don't appear to be expecting an improvement in FY 2019. I would suggest investors hold off an investment until the company has provided a trading update for the current financial year.
The Westpac Banking Corp (ASX: WBC) share price fell to a multi-year low of $27.07 on Wednesday. Shareholders have been selling the bank's shares in a hurry after it downgraded its profit expectations last month. Westpac advised that its full year profit result would be reduced by $235 million following further work on addressing customer issues and from provisions related to recent litigation. While this news is disappointing, I still see a lot of value in its shares at this level and think it is worth considering if you don't have exposure to the banks already.
