With the market sinking lower once again on Thursday, it will come as no surprise to learn that a number of shares are trading at 52-week lows of worse.
Three well-known shares that have hit this unwanted milestone today are listed below. Are they bargain buys?
The AGL Energy Ltd (ASX: AGL) share price has fallen to a 52-week low of $19.26 today. Investors continue to head to the exits in a hurry amid concerns that competitive pressures and regulatory scrutiny will weigh on its performance. While I feel its shares look about fair value now at 12x estimated forward earnings, I wouldn't be a buyer of them until after next year's Federal election. I suspect that energy prices could be a hot topic during the election and changes may be proposed to make them more affordable.
The AMP Limited (ASX: AMP) share price dropped to a 15-year low of $3.12 this morning. The financial services company has come under pressure this year after poor practices were uncovered at the Royal Commission. I believe this has damaged its brand and expect it to take some time before it recovers. In addition to this, earlier this week Slater & Gordon Limited (ASX: SGH) named AMP as a target for its Get Your Super Back campaign. I would suggest investors stay clear of AMP's shares for the time being despite how cheap they may look on paper.
The G8 Education Ltd (ASX: GEM) share price fell to a five-year low of $1.96 this morning. While part of today's decline was driven by its shares going ex-dividend, they have come under significant pressure over the last 12 months due to its disastrous performance. An oversupply of childcare centres has led to its occupancy levels falling significantly. Unfortunately, I don't believe this is going to change any time soon and would suggest investors stay clear of G8 Education and its peers until there are major improvements in trading conditions.
