3 Stocks Trading at 52-Week Lows — Is This the Bottom?

Kinross Gold, Huntingdon Capital, and Argonaut Gold hit yearly lows.

| More on:
The Motley Fool

Another week of 2014 is in the books, and for these three companies trading at 52-week lows, it was a week to forget.

Kinross Gold (TSX: K)(NYSE: KGC)

This gold mining company hit a new 52-week low of $4.38 on April 21. This low come a couple of weeks after the company revised its Tasiast expansion projections to 848,000 ounces per year from 2018-2022. The revised numbers are based on an extra 3.1 million estimated ounces, bringing the total estimated reserves to 9.6 million ounces.

This fall in the stock may be more about the price of gold than a fault of the company, with gold closing Friday at $1,304.40, far below a 52-week high of $1,487.20 per ounce hit last May. This has cut into the company’s earnings but is still far cry from the $1,179.40 per ounce the price of gold hit back in June.

Huntingdon Capital (TSX: HNT)

A real estate management company, with a portfolio including office, industrial, manufacturing, retail, and aviation-related properties struck a new 52-week low on April 25 when the stock reached $11.68. The company has a reasonable footprint, with 2.7 million square feet of available space throughout 35 properties. The company took an internal blow back on April 13 when it lost its Senior V.P of operations to a rival hotel REIT.

On a positive note, Huntingdon Capital monetized a $5 million vendor take back loan last week; these funds were the final part of the sale of its Ontario assets back in 2012. Huntingdon has also (through its subsidiary FAM Real Estate Investment Trust (TSX: F.WT)) come to an agreement to invest $16 million into a 64,000 sf data center in Winnipeg. The building is already completely pre-leased by Manitoba Telecom Services (TSX: MBT).

This is significant because Manitoba MTS is one of the two primary players in the provinces telecom industry, and has been hesitant to relocate to newer office buildings since the construction of its downtown skyscraper. While the stock may have hit a low, its 52-week range is quite narrow with a trading range of $12.80 to $11.68.

Argonaut Gold (TSX: AR)

Another gold producer saw a new 52-week low this week, when Argonaut Gold fell to $3.60 on April 21. The company has actually been posting encouraging numbers lately with Q1 production increasing 4% to 30,936 gold equivalent ounces (GEOs are based on conversion ratio of 55:1 for silver to gold). Total gold sales for the past quarter also rose by 13% compared to Q1 2013, with 30,165 gold equivalent ounces.

However the company is facing some legal issues after its environmental impact statement for its San Antonio project (estimated 1.73 million ounces) was rejected by Mexican authorities on April 10. This has led Bank of Nova Scotia to cut its price target from $8.00 down to $6.50 as it believes it could take at least a year to resolve this issue with the Mexican government.

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 market and mine some wisdom from its missteps.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Cameron Conway does not own any shares in the companies mentioned.

More on Investing

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »