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

Bombardier, Dundee Corp., and Fortress Paper hit yearly lows.

| More on:
The Motley Fool
You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

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

Bombardier (TSX:BBD.B)

The fallout from the announced delays to the C-Series aircraft continues to raise concern among investors, who have lost some faith in the company. This fallout came to an impasse on February 13 when the stock hit a new 52-week low of $3.44. Adding to the woes is a cut by management to their 2014 EBIT margin target in both the rail and aviation segments. While net income had increased from $470 million in 2012 to $572 million this year, the concern of further costs attached to the C-Series continues to erode the stock’s value.

Dundee Corp. (TSX:DC.A)

The independent Canadian asset management company took the plunge on February 13 when it hit a new 52-week low of $17.49. The company is divided into five segments: real estate development, oil and gas mining, beef production, asset management and investment banking. With hands in so many pockets the risk of one industry dragging down the books is a concern, and recently Dundee raised its stake of Goodman Gold Trust to 25%. This new low is a far cry from its 52-week high of $37.88 and has erased all gains made since December 2012.

Fortress Paper (TSX:FTP)

A producer of specialty pulp, specialty papers, bank note, and security papers faced a new low this week when it fell to $3.35 on February 13, the same day it announced its Q4 release date. Fortress is facing the reality of a new 13% security deposit being imposed by the Chinese government on dissolving paper products. This levy stems from the release of a “anti-dumping investigation against dissolving pulp imports”. This led to a 10-week temporary shut down of its Thurso, Québec plant, which is set to reopen at the end of the month.

Foolish bottom line

The market is full of highs and lows and savvy investors know when to jump on a good deal. A bad week for companies could actually turn into an opportunity for potential investors to jump in at bargain prices.

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 close up image of Canadian $20 Dollar bills
Dividend Stocks

3 Top Dividend Stocks to Buy Under $20

Given their stable cash flows and high dividend yields, these three under-$20 stocks could boost your passive income.

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Dividend Stocks to Buy During Recession to Lock In a 6% Yield

Make the most of the recession with dividend investing. You can buy stocks for a discount and lock in higher…

Read more »

Bank sign on traditional europe building facade
Bank Stocks

Canadian Bank Stocks Near 52-Week Lows: Buy Them All With This ETF

Here's an easier way to buy the dip.

Read more »

Choice of fashion clothes of different colors on wooden hangers
Stocks for Beginners

Is Aritzia (TSX:ATZ) the Best TSX Stock to Buy in July 2022?

Aritzia’s international market expansion and improving profitability could help its stock recover fast.

Read more »

exchange traded funds

2 Cheap Vanguard and BlackRock ETFs to Buy and Hold Forever

These two funds are great ways to invest in the U.S. and Canadian stock markets.

Read more »

Dividend Stocks

Put TFSA Cash to Work: Earn a Tax-Free Yield of at Least 5%

By investing your TFSA cash in these stocks, you can earn a reliable and high yield of more than 5%.

Read more »

clock time

New TFSA Investors: Time to Buy Stocks Amid the Market Correction?

TD Bank (TSX:TD)(NYSE:TD) stock seems like a great long-term buy for beginner investors willing to put up with the short-term…

Read more »

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

3 Growth Stocks Trading at a Massive Discount Right Now

Canadian growth stocks such as Shopify have the potential to deliver market-beating gains to investors in the next year.

Read more »