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

Alamos Gold, Serinus Energy Inc., and TearLab Corporation hit yearly lows.

| More on:
The Motley Fool

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 markets.

Alamos Gold

Back in late April, Alamos Gold (TSX: AGI)(NYSE: AGI) revealed its Q1 report, which showed a 90% drop in its gold profits. Alamos only managed to bring in U.S. $2.7 million in the past quarter; the main factor behind this drop was a 21% drop in the price in gold compared to Q1 2013. Since this announcement the stock has tumbled down to its new 52-week low of $9.25 on May 16.

Alamos has long been a short-term stock for many investors, allowing for some quick gains if you can time out the price of gold correctly. Those who tend to look at Alamos as a long-term hold tend to get burned. Knowing this, the current price of $9.29 could be a good time to clock in for some short-term gains. Current price targets for the company are between $14.00 to $15.00 and the majority of analysts have a “buy” rating on the stock.

Serinus Energy Inc. 

A previous entrant in our series this oil and gas company has operations in Ukraine, Tunisia, Brunei, and Romania. The stock hit a new 52 week low of $2.40 on May 16, following the fall of Eastern Ukraine to Russian nationalists. This is significant to Sernius Energy (TSX: SEN) as 43% of its Ukrainian assets are in the “annexed” eastern part of the country.

The stock began its fall a month ago when a perfect storm of circumstances hit it with a decrease in production, the crisis in Ukraine, the cancelation of its Syrian operations, and the closure of its well in Brunei. After a vital part got stuck in the hole, the set back will cost the company $11.8 million. Despite all of these setbacks, analysts still maintain an average target price of $5.08.

TearLab Corporation 

A singularly focused healthcare company which manufactures devices to diagnose eye disease, TearLab (TSX: TLB)(NASDAQ: TEAR) hit a new 52-week low of $4.20 on May 12. The past year has been a rough one for the company, as the stock has gone from $15.30 last July to its lowest point since December 2012.

TearLab’s previous quarter was a mixed bag — revenues climbed 70% in the quarter to U.S. $4.2 million, but a net loss of US$5.6 million was also realized. This loss was down from the previous year’s quarter where the company lost U.S. $8.6 million. Despite these losses the company is sitting on U.S. $32 million in cash.

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

question marks written reminders tickets
Dividend Stocks

Dividend Investors: Is BCE Stock a Buy Now?

BCE now offers a 7.9% dividend yield.

Read more »

A bull outlined against a field
Tech Stocks

Is a Bull Market Here? 4 Reasons to Buy Celestica Stock Like There’s No Tomorrow 

Celestica (TSX:CLS) stock has been a huge winner for investors this year, but there could be even more in the…

Read more »

Retirement plan
Investing

1 Retirement Savings Hack That Has Created Many Millionaires

Investors can retirement with $1 million in savings by investing in index funds such as the S&P 500.

Read more »

edit Taxes CRA
Dividend Stocks

CRA Money: 2 More Days to Boost Your Tax Refund!

Dividend stocks like Toronto-Dominion Bank (TSX:TD) can be great RRSP holdings.

Read more »

close-up photo of investor Warren Buffett
Stocks for Beginners

The Best Warren Buffett Stocks to Buy With $300 Right Now

These Warren Buffett stocks have long histories of growth, each offering their own reasons for why investors need them today.

Read more »

grow money, wealth build
Dividend Stocks

3 TSX Dividend Stocks With Yields Above 7% (But Are They Safe?)

These three dividend stocks all have ultra-high yields, making them some of the best to buy if you're looking to…

Read more »

oil and natural gas
Energy Stocks

3 Energy Stocks Already Worth Your While

TSX energy stocks could shine for much longer. Here's why Canadian Natural Resources (TSX:CNQ), Parex Resources (TSX:PXT), and another oil…

Read more »

Light bulb with jester hat perched on top
Dividend Stocks

3 Canadian Dividend Stocks With Payouts That Are No Joke 

Here are three top Canadian dividend stocks long-term investors would be remiss to ignore, particularly at these current valuations.

Read more »