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 hit a new 52-week low on March 3, dropping down to $16.90, matching a low last hit in March 2011. Two consecutive years of losses have hampered investor confidence in the company, and pulled the stock price far from the 52-week high of $36.57 that it saw in July.
The bulk of the losses have come from the research and initial production of Westport’s next generation of engine systems just hitting the market now. Westport has entered into two new OEM agreements with Delphi Automotive and Tata for the construction of natural gas engines and vehicles across several continents. These agreements should pull Westport out of the red and back into the black in the near future — in fact, the stock is already well on its way back up.
Danier Leather (TSX:DL)
Danier Leather may have just hit a new 52-week low of $10.50 on March 6, but its fall was a long time coming. The largest factor behind the stock’s drop came last March when the Federal government raised the 8% tariff on leather jackets imported from China to 13%. The company estimated that this would cost it $1.2 million more a year, and its consumers would see increases of $10-$20 per jacket.
More recently, Q2 2014 revenues took a slight tumble falling to $62.0 million from $66.1 million in Q2 2013. Net income also dropped over the quarter to $6.8 million this year compared to $8.4 million in Q2 2013. The company attributed these losses to ice storms and related power outages in Eastern Canada. On a positive note Danier’s “higher margin accessories business” rose 20% from Q2 2013.
Halogen Software Inc (TSX:HGN)
Halogen Software makes its second appearance in a row in our list, falling to another 52-week low of $10.60 on March 6, outdoing its previous low of $11.36 on February 28. Investors continue to remain weary at a declaration made by the company that “We expect to continue to incur losses for the foreseeable future as we are focused on growing recurring revenue and market share and not short-term profitability”. Combined with two consecutive years of losses ($12.8 million in 2013 and $19.6 million in 2012), the latest news has left the company limping into the first three months of 2014.
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 learn from its missteps.
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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. The Motley Fool owns shares of Westport Innovations.