Another week of 2014 is in the books, and for these three companies trading at 52-week lows, it was a week to forget.
Westport Innovations (TSX: WPT)(NASDAQ: WPRT)
The stock of this company has had quite a bumpy road in 2014, hitting its second 52-week low of the year. This new low happened on March 27 when the stock fell to $15.34, well below the $16.90 it sunk to on March 3. This stock has been taking a pounding thanks to a net loss for 2013 that has worried some investors.
However recent streamlining of its production capacities should erase any losses incurred in 2013. Most of the losses were R&D costs associated with Westport’s newly released engine platforms. This downturn for the stock could prove to be a bargain for investors, as many analysts still maintain a target price of $30.78. The stock closed on Friday at $16.01.
Kinross Gold (TSX: K)(NYSE: KGC)
Canadian gold miner Kinross fell to a new 52-week low on March 27, landing at a share price of $4.42. The company is feeling the effects of the political pressure between Russia and the West, and the threat of sanctions and/or seizures have investors looking away from a company that is heavily invested in Russia.
Kinross operates two mines in the far east of Russia; the Kupol mine and the Dvoinoye project. These two mines make up 27% of the total gold output of Kinross, and any interruption in the mines’ output could quickly affect the company. In 2013, Kinross sold $3.779 billion worth of gold, but took in a net loss of $3.742 billion. On a positive note, Goldman Sachs has raised its stock status for Kinross from “sell” to “hold”. It has also raised its price target to $4.20, while other analysts have the stock as high as $6.40.
Vicwest Inc. (TSX: VIC)
A manufacturer and distributor of engineered storage and handling systems for grain, fertilizer, and liquid storage hit a new low last week when it closed at $9.54 on March 28. The stock began to fall after the company released its less-than-stellar 2013 year-end results.
Revenues came in at $394 million in 2013, down from $411 million in 2012, and net income plummeted to a loss of $5.1 million(-$0.31 per share), a far cry from 2012’s gains of $11.5 million. Margins took a hit in 2013 thanks to several factors including an increased price of steel, a shortened construction season and supply chain issues.
One analyst at AltaCorp Capital Research has lowered his price target from $12.50 to $9.00 and labeled the stock as “underperform”. CIBC World Markets has only cut its price target to $11.50, down from $13.00 and maintained a “sector performer” rating. Regardless of how analysts look at this stock, due to last fall’s record crop, the backlog of orders for Vicwest subsidiary Westeel reached a new record in February with $73.8 million worth of orders, up from $28.5 million the same time last year.
Foolish bottom line
The market is full of highs and lows and savvy investors know when to jump on a good deal. For these companies, a week like this could turn into an opportunity for investors — if they can ride out the waves of the markets and politics.
