Hi there, Fools. I’m back to call attention to three stocks 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.”
So, if you’re looking to double your money in 2020, this is a good place to start your search.
Pot shots
Leading off our list is cannabis producer Aurora Cannabis (TSX:ACB)(NYSE:ACB), which is down a whopping 66% over the past year and currently trades at 52-week lows of $2.39 per share.
Rising costs, disappointing revenue growth, and concerns over a shaky balance sheet continue to weigh heavily on the stock. And most recently, Aurora’s chief corporate officer Cam Battley, one of the company’s most important executives, decided to step down.
On the positive side, Aurora remains a market share leader in the space, providing contrarian Fools with a possible long-term opportunity.
“Despite short term distribution and regulatory headwinds in Canada that have temporarily impacted the industry, the long-term opportunity for Aurora in the global cannabis and cannabinoids market is immense,” said CEO Terry Booth in November.
Aurora currently sports a beta of 1.6.
Important information
Next up, we have information management specialist Information Services (TSX:ISV), whose shares are off about 6% over the past six months and currently trade at 52-week lows of $15.19.
The stock has been pressured by lacklustre revenue growth over the past year, but now might be a prime opportunity to pounce. In the most recent quarter, for example, free cash flow remained strong at $6.6 million, as revenue improved to $32 million.
More importantly, the company remains on track to meet its full-year 2019 guidance.
“Our performance in the third quarter was as expected and we remain a strong free cash flow business,” said CEO Jeff Stusek. “Registry Operations continues to be challenged by the effects of economic conditions but is delivering robust results.”
Information Services currently offers a fat dividend yield of 5.2%.
Playing the organ
Rounding out our list is cannabis products specialist OrganiGram Holdings (TSX:OGI)(NASDAQ:OGI), which is down more than 50% over the past year and currently trades at 52-week lows of $2.64 per share.
Hurdles in the Canadian legal market for edibles, near-term uncertainty, and general industry concerns have weighed on the stock. But with that said, OrganiGram might now be too cheap to pass on.
In the most recent quarter, the company’s revenue popped 547%. More importantly, OrganiGram’s balance sheet remains relatively conservative.
“We have great conviction in our strategy and ability to onboard the new retail store openings and to launch a portfolio of edible and derivative products appealing to adult consumers,” said CEO Greg Engel. ”
OrganiGram shares trade at a forward P/E in he high teens.
The bottom line
There you have it, Fools: three ice-cold stocks worth checking out.
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.
