The Motley Fool

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

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

KP Tissue Inc. (TSX: KPT)

KP Tissue Inc is the publicly traded branch of Kruger Products L.P and currently owns a 16.9% interest in the private entity. Kruger Products L.P provides Canadians with brands such as Scotties, Purex, and Cashmere, and is the nations Canada’s leading tissue products supplier by overall dollar and volume market share.

The stock hit a new 52-week low on March 19 when it fell to $15.74, a day after it announced its year-end results that saw a net loss for the company. The net losses were $300,000 or $0.03 per share. KP Tissues’ equity share of KPLP’s gains had been $8.2 million, but depreciation expenses of $7.1 million and $1.2 million in carrying costs leave KP Tissues with a loss.

Since the low, analysts at Scotiabank have lowered their targets for the stock from $21.50 to $20.00, but retain an “outperform” rating. This presents a chance for growth as the stock has already climbed back up to $16.25 on Friday.

EcoSynthetix Inc. (TSX: ECO)

This company, which specializes in renewable bio-based chemical products, sunk to a new low of $2.28 on March 19. The company is one of the leading voices of the Canadian Clean Technology Industry and was a major contributor to the “Canadian Clean Technology Report for 2014 in Ottawa, Ontario.” A report that shows its industry’s potential of reaching $50 billion in sales by 2022.

The company’s stock has been in a steady decline since July when it had its 52-week peak of $5.51. This is a far cry from the $9.15 it launched at in September 2011. Although the stock has taken a beating, revenues have been climbing. In the past year revenues have jumped 14% to $19.6 million. The company has been able to grow its customer base with the introduction of bio-based binders in the wood composites and insulation markets, and the company is looking into new markets such as building materials.

Boston Pizza Royalties L.P.(TSX: BPF.UN)

This is the company that controls the trademarks and licenses of Boston Pizza International, and the branch into which income from franchisees flows. Sales for Boston Pizza have been steady, with 2013 posting system-wide sales of $974 million, of which Boston Pizza Royalties received a net income of $14.8 million.

The stock took a hit on March 21 when it hit a new low of $19.22. This low comes two weeks after it was announced that the parent company Boston Pizza International would be releasing 1.6 million of its 6.8 million shares of BPRLP to a syndicate of investment dealers at a price of $21.10 per share.

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.

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