With the market having a few wobbles this month, it will come as no surprise to learn that a good number of shares are trading lower month to date.
Some have even fallen to 52-week lows or worse. Three that have hit this unwanted milestone are listed below. Is it time to invest?
The Galaxy Resources Limited (ASX: GXY) share price dropped to a 52-week low of $1.82 on Wednesday. The lithium miner and its industry peers have come under significant pressure over the last 12 months after the price of the battery making ingredient sunk materially lower amid increasing supply and falling demand. Concerns about slowing global economic growth are unlikely to have helped matters this week. Whilst its shares look dirt cheap on a sum of parts valuation, I would suggest investors stay clear of Galaxy until lithium prices have improved greatly.
The Helloworld Travel Ltd (ASX: HLO) share price hit a 52-week low of $4.30 yesterday. Investors have been selling off the integrated travel company's shares this month after it was caught up in a political scandal. The potential loss of its government contracts appears to have spooked investors. Though it is worth noting that analysts at Ord Minnet believe that the loss would only have a small impact on its earnings, making the selloff a bit of an overreaction. According to the note, it has a buy rating and $6.14 price target on its shares. I agree with Ord Minnett and feel this recent share price weakness is a buying opportunity.
The Star Entertainment Group Ltd (ASX: SGR) share price tumbled to a multi-year low of $4.11 on Wednesday. Investors have been heading to the exits since the release of its half year results in February. For the six months ended December 31, normalised gross revenue fell 6.1% to $1,277 million and net profit after tax was down 2.4% to $124 million. One broker that sees this as a buying opportunity is Credit Suisse. Earlier this month the broker upgraded the casino and resort operator's shares to an outperform rating with a $5.50 price target. Credit Suisse believes its shares are cheap and expects investor sentiment to improve in the near future and lead to a re-rating.
