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

Alamos Gold, Penn West Petroleum, and Alaris Royalty hit yearly lows.

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

Alamos Gold (TSX:AGI) hit a new low on January 24, dropping down to a share price of $9.84. This comes just over a week after Credit Suisse cut its price target on Alamos to U.S. $11 from $15 and maintained a “neutral” rating. The company released its Q4 report on Jan 16 and revenues for the quarter were down 50% from Q4 2012 and were $6 million below the company’s expectations.

Alamos also posted a year-end drop in revenues of 14% the stock has been in freefall since the announcement and bottomed out on January 24.

Penn West Petroleum (TSX:PWT) took a hit when it released its Q4 numbers that failed to reassure investors that its turnaround initiatives are working. This combined with a cut in its expected production numbers from 101,000-106,000 BOE per day down from 105,000-110,000 BOE per day. These revelations dragged the stock down to a 52 week low of $7.82 on Jan 22.

Alaris Royalty (TSX:AD) which provides alternative financing for a diversified group of private businesses has taken a nose dive since early December. This was trigger by several issues with a few its portfolio members. SHS group which sold home-installed products for Sears went under at the end of 2013. Lapsat International which provides tobacco toxicology testing services ran into issues with the FDA. Finally SCR Mines Technology has run into some industry related problems. Combined all these issues has dragged the stock down to a 52 week low of $23.99 on Jan 20.

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 bump in the road could turn into a bump in investor’s portfolios, if they survive.

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.

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