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Is it time to buy Blackmores and these beaten down ASX shares?

James Mickleboro
pizza shares

The All Ordinaries may be charging higher in 2019, but not all shares on the index are flying high.

Three shares which have crashed lower this year are listed below. Is this a buying opportunity for investors?

The AusCann Group Holdings Ltd (ASX: AC8) share price has fallen 29% in 2019. The medicinal cannabis company’s slow progress and lack of meaningful revenue generation appears to have disappointed investors. Especially given the progress that some of its rivals have made this year such as Althea Group Holdings Ltd (ASX: AGH). After being a front runner for some time, I think AusCann has lost valuable ground and Althea is now the likeliest winner in the Australian medicinal cannabis industry.

The Blackmores Limited (ASX: BKL) share price is down over 32% since the start of the year. Investors have sold off the health supplements company’s shares this year due to its disappointing performance in FY 2019. This has been driven by the softening of demand for its products in the key China market. And although its shares now look reasonable value, I think it would be prudent to wait for its full year results release later this month and its guidance for FY 2020.

The Galaxy Resources Limited (ASX: GXY) share price is down a massive 40% in 2019. Galaxy and the rest of the lithium miners have come under pressure this year after a collapse in prices of the battery making ingredient. This has been caused by increasing supply and weakening demand from Chinese battery makers. But there are signs that the worst could be over now. Last week lithium giant Albemarle announced a stronger than expected quarterly update and upgraded its full year profit guidance. It also suggested that lithium prices could strengthen in the near term. If this occurs and is sustained then Galaxy could prove to be great value, though it may be best waiting for proof of this before considering an investment.

And here is another cannabis company which looks set to be a market leader in a US$22 billion industry.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Blackmores 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