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Bargain Hunters: 3 Stocks Nearing 52-Week Lows to Buy Cheap

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Bargain hunters are present in global stock markets, including the Toronto Stock Exchange (TSX). These sleuth investors appear during market selloffs and downturns. However, they’re also on the lookout for weakening stocks. Some may be spendthrifts following the rule of “buying low and selling high.”

Whatever the motives or intentions are, there are actually stocks that are nearing their 52-week lows. Bargain hunters could make a killing from a timely purchase.

Absolute Software (TSX:ABT), BlackBerry (TSX:BB)(NYSE:BB), and B2Gold (TSX:BTO) are worth watching, as the stocks are almost close to or are headed to the basement.

Cybersecurity

Absolute Software is the developer of Absolute Persistence. The cloud-based platform uses a self-healing endpoint security technology that gives IT personnel complete and “absolute” control over devices, data, and applications. The small-cap tech company enables clients to enhance IT asset management, protect sensitive data, reduce insider threats, and ensure compliance.

In essence, Absolute Software operates in the cybersecurity market. The market is still growing but is becoming an all-important industry. Earnings have rebounded in 2018, and the growth estimate this year is about 125%. Absolute has the potential to grow big in size. The company could also be an acquisition target.

The stock hasn’t really sizzled this month, as the current price of $7.59 is lower than the $7.71 at the start of 2019. Bargain hunters can seize the opportunity, as the stock nears its 52-week low of $7.18. The 4% dividend yield is a bonus.

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Gold mine

If you like gold, Vancouver-based B2Gold is your golden opportunity to invest. The $4.6 billion company is the world’s new senior gold producer with five operating gold mines and several exploration and development projects in various countries.

Although B2 Gold has risen by 11.33% to $4.33 from a month ago, analysts are raising buy signals. However, gold prices can sharply pullback over the next few weeks, and bargain hunters can buy into the weakness.

There are geopolitical risks in the countries the company operates in, but B2Gold has managed them well and continues to deliver decent profits vis-à-vis gold prices. Last year, total revenue spiked by 91.8% but is expected to taper off in 2020. The company is scheduled to report the Q2 and first-half 2019 financial results on August 6. The results will have a material bearing on the stock price regardless of the outcome.

Fallen angel

The shares of BlackBerry have dropped by almost 16% from mid-June. If the downward trend continues, the current price of $9.72 could hover close to the 52-week low of $8.94. The once-famous maker of business-centric devices has transitioned into a company that offers enterprise software and services.

But the fallen angel of the TSX can make a turnaround. After the shift from hardware to software, BlackBerry can focus more on securing and managing Internet of Things endpoints.

The BlackBerry Secure, an end-to-end Enterprise of Things solution, could be Blackberry’s Turnaround 2.0. If this service succeeds and becomes an income generator in the future, the stock has nowhere to go but up.

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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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of BlackBerry and BlackBerry. BlackBerry is a recommendation of Stock Advisor Canada.

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