Hi there, Fools. I’m back to call attention to three stocks trading at new 52-week lows. Why? Because the big gains in the stock market are made by buying attractive companies
- during times of maximum investor pessimism; and
- when they’re available at a clear discount to intrinsic value.
As legendary value investor Warren Buffett once quipped, “Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down.”
Let’s get to it.
Playing the organ
Leading off our list is dried cannabis specialist OrganiGram Holdings (TSX: OGI)(NASDAQ: OGI), which is down 65% over the past six months and currently trades near 52-week lows of $3.23 per share.
The stock has taken a beating over the past year on disappointing sales, and the pain isn’t letting up. On Wednesday, the shares plummeted 20% after management said it expects sequential revenue to decline. For Q4, OrganiGram expects revenue of only $16.3 million, well below net revenue of $24.8 million in Q3.
On the bullish side, OrganiGram continues to boast a strong balance sheet, industry cost advantages, and a strong competitive position. When you combine OrganiGram’s still-attractive growth prospects with its beaten-down stock price, now might be an opportune time to pounce.
OrganiGram shares trade at a forward P/E of 30.
Beautiful choice
Next up, we have beauty products company MAV Beauty Brands (TSX: MAV), whose shares are down a whopping 72% in 2019 and trade near 52-week lows of $3 per share.
Weak sales and industry-low margins continue to wreak havoc with the stock price. Just yesterday, MAV shares plunged a massive 39% after management announced disappointing Q4 guidance and completely withdrew its 2020 targets.
“While there are high points across the business that show our strategy and platform are working, we are facing some challenges that will impact near-term results and moderate our growth rate, causing us to fall short of our previous forecasts,” said Founder and CEO Marc Anthony Venere.
In Q3, EPS clocked in at $0.10 on revenue growth of just 8%.
MAV shares trade at a forward P/E of 5.1.
Core position
Rounding out our list is energy services specialist Shawcor (TSX:SCL), which is down 46% over the past year and trades near 52-week lows of $11.72.
Soft energy prices and weak drilling activity continue weigh heavily on Shawcor’s financials. Just yesterday, the stock plunged 10% after the company earned just $6.5 million in Q3 versus $51 million in the year-ago period.
On the bullish side, Shawcor ended the quarter with a still-solid order backlog of $509 million.
“Third-quarter results were in line with expectations and were supported by a continued focus on managing the volatility of our book and turn businesses, securing and executing pipe coating projects and reducing debt leverage,” said CEO Steve Orr.
Shawcor currently trades at a forward P/E of 14.6 and offers an attractive dividend yield of 4.4%.
The bottom line
There you have it, Fools: three ice-cold stocks trading near 52-week lows.
As always, don’t see them as formal recommendations. Instead, view them as a starting point for more research. Trying to catch a falling knife can be hazardous to your wealth, so plenty of homework is still required.
Fool on.
