3 Stocks Trading at 52-Week Lows: Is Now the Time to Buy?

Silvercorp Metals, Absolute Software, and Karnalyte Resources have hit 52-week lows. Could this be the perfect time to invest?

| More on:
The Motley Fool

The market is full of highs and lows, and savvy investors know when to jump on a good deal. Could these three companies with 52-week lows be a good bet?

Silvercorp Metals

Vancouver-based Silvercorp Metals (TSX: SVM)(NYSE: SVM) hit a new 52-week low of $1.95 on May 23, 2014. This new low came a day after the company posted its Q4 results, which revealed a decreased output of 191,122 tonnes of ore and net income results in the red. Revenue for the quarter was $16 million, down from $33 million, while year-end revenue came in at $108 million, down sharply from $181 million in 2013. Production of silver fell 38%, lead 47%, and zinc 54%.

The income for Silvercorp looks just as dismal, with a Q4 loss of $4.6 million compared to a net profit of $8.3 million in Q4 2013. The year-end results were quite shocking, with a net loss of $48 million compared to the net profit of $42 million in 2013. Part of this loss is due a 31% decrease in the price of silver during the quarter.

Absolute Software

Digital security company Absolute Software (TSX: ABT) hit a new 52-week low of $5.85 on May 22, 2014. The stock has been slipping since its Q3 report came out two weeks ago. Revenue managed to climb by 15% to $24.1 million, from $20.9 million last year. Net income totaled $1.4 million, which, while not much, is better than the $500,000 loss in Q3 2013. Absolute may be in a position for some growth as it has just released its newest software, which enables full “bring your own device” capabilities for Mac, Windows, and Cisco Identity Service Engine. This will allow employees to connect their own devices to their business’ digital infrastructure.

Karnalyte Resources

Potash project developer Karnalyte Resources (TSX: KRN) fell to a new 52-week low of $1.05 on May 23, 2014. The company had two instances of bad news break a couple of weeks ago. First, on May 14, 2014, the company abruptly replaced its CEO; the next day it released its Q1 results, which reported a net loss of $1.2 million. This Q1 loss was a slight improvement over the $1.6 million loss the company saw in Q1 2013. Net working capital also took a slip to $45.9 million from $59.5 million, and cash on hand also dropped by $16 million from this point last year.

The stock fell off a cliff back on July 28, 2013, and has been riding out a steadily lowered price floor ever since. When you compare the 52-week high of $7.46 that the stock saw last May to its most recent price target of $1.10, this shows a company in need of some changes.

For these companies, a week like this could turn into an opportunity for investors if they can ride out the turbulence of the markets.

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

More on Investing

ETF is short for exchange traded fund, a popular investment choice for Canadians
Investing

How to Protect Your Portfolio in 2026, No Matter What Happens

Investors looking for portfolio protection for what could be a volatile year ahead may want to consider these two avenues…

Read more »

A bull and bear face off.
Investing

2 Buys and 1 Sell for Investors Worried About a Market Crash in 2026

For investors worried about an impending market crash (or at least major volatility) in 2026, here are three ways to…

Read more »

person stacking rocks by the lake
Investing

The Ultimate Rebalancing Strategy: 2 Top Ways to Create Portfolio Stability Next Year

For investors looking to rebalance their portfolios for the coming year, here are a couple strategies I use to rethink…

Read more »

Stacked gold bars
Metals and Mining Stocks

It’s Not Too Late to Join the Rush in Canadian Gold Stocks. Really

Opportunity is knocking for prospective investors in Canadian gold stocks. Here’s why you need to invest now.

Read more »

four people hold happy emoji masks
Investing

3 Canadian Stocks With Bullish Catalysts Heading Into 2026

Are you looking for companies with bullish catalysts that can ride these key drivers to big gains in 2026? Check…

Read more »

A woman stands on an apartment balcony in a city
Dividend Stocks

How to Rebalance Your Portfolio for 2026

There are plenty of to-dos for investors before the year ends and 2026 starts. One thing to not forget is…

Read more »

Asset Management
Dividend Stocks

3 of the Best Dividend Stocks to Buy for Long-Term Passive Income

These three stocks consistently grow their profitability and dividends, making them three of the best to buy now for passive…

Read more »

A plant grows from coins.
Bank Stocks

1 Canadian Stock to Rule Them All in 2026

This top Canadian stock is combining powerful momentum with long-term conviction, and it could be the clear market leader in…

Read more »