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

DirectCash Payments, Liquor Stores N.A. and Amica Mature Lifestyles hit yearly lows.

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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.

DirectCash Payments Inc. (TSX:DCI)

The largest branded ATM provider in Canada and Australia, and the second largest branded ATM provider in the United Kingdom hit a new 52-week low on March 11 when it fell to $14.41. This is the second major dip the stock has taken over the last year, and this new low just edges out its previous 52-week low of $14.64 on September 18, 2013.

The fall in the stock has less to do with the operations of the company and more to do with the troubles of Cash Store Financial (TSX:CFI), which is currently locked out of the Ontario market. DirectCash Payments provides all ATM services for Cash Store, and it is believed that Cash Store Financial contributes up to 20% of DirectCash’s EBITDA. 

Liquor Stores N.A. (TSX:LIQ)

Back for the second time in two months is Liquor Stores N.A., which currently operates 245 retail liquor stores in Alberta, British Columbia, Alaska and Kentucky. The company bottomed out again on March 11 with a new 52-week low of $11.04. Just as before the release of the Liquor Policy Review Report by British Columbia Ministry of Justice, which recommended introducing liquor sales into grocery stores, continues to drive away investors.

Many investors have chosen to take preventative measures to offset their losses now instead of waiting to see how the government’s recommendations play out, as Liquor Stores N.A. currently operates 36 stores in the province. Despite this new low the company will pay out its quarterly dividend of $0.09 per share. 

Amica Mature Lifestyles Inc. (TSX:ACC)

This company manages, markets, designs, develops and owns luxury housing and services for older customers in BC, Alberta and Ontario. It hit a new 52-week low on March 10 of $7.31. The company has been posting steadily increasing revenues and an average residency of 94%, but has been having problems converting revenues into income.

Q2 2014 saw a net loss of $4.3 million, which is slightly down from a net loss $4.6 million in Q2 2013. Its year to date numbers aren’t much better with $6.8 million in net losses this year and $8.8 million in net losses during the same period last year. The company has managed to increase its margins in its retirement living segment but is still a far way from posting a profit.

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.

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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