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Should you buy Galaxy Resources and these beaten down ASX shares?

James Mickleboro
fall, take hit, punch, boxing

Although the market has been trading close to its highest levels in 2019 this month, not all shares have fared so well.

Three shares that have been beaten down in 2019 and hit 52-week lows on Monday are listed below. Is this a buying opportunity?

The Bapcor Ltd (ASX: BAP) share price dropped to a 52-week low of $5.38 yesterday. The automotive aftermarket parts company’s shares have come under pressure since the release of its half year results in February. Although Bapcor posted a solid 9.2% increase in net profit from continuing operations to $43.1 million, its outlook for the second half appears to have spooked investors. Management warned that trading conditions were challenging and it was only expecting to hit the lower end of its guidance range. I think Bapcor’s shares were a little overvalued previously, but are now trading at a fair price and could be worth considering.

The Galaxy Resources Limited (ASX: GXY) share price tumbled to a 52-week low of $1.81 on Monday. The lithium producer’s shares continue to be sold off after lithium prices weakened considerably due to increased supply and lower demand from China. Whilst I think that Galaxy’s shares look very cheap, I would suggest investors wait for lithium prices to reach an inflection point before considering an investment.

The Praemium Ltd (ASX: PPS) share price continued its slide and dropped to a 52-week low of 41 cents yesterday. The investment platform company’s shares have come under significant pressure since it announced the loss of ANZ Private as a customer to rival Netwealth Group Ltd (ASX: NWL). ANZ Private was one of the company’s biggest customers, contributing 8% of its total revenue. Although I’m not in a rush to invest, I do think the selling has been overdone and left Praemium’s shares trading at an attractive level.

Instead of Praemium, I would be buying one of these growth shares that have been tipped for big things.

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James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Praemium Limited. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Praemium Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019