Australia Markets closed

Why Mayne Pharma and these ASX shares just sank to 52-week lows

James Mickleboro
Stock market chart or graph in red falling downward bear market.

On Tuesday the Australian market tumbled lower amid concerns over global economic growth.

A number of shares fell more than most and some even dropped to 52-week lows or worse. Three shares that made this unwanted milestone are listed below.

Here’s why they are at new lows:

The Blackmores Limited (ASX: BKL) share price hit a multi-year low of $79.66 on Tuesday. The health supplements company’s shares have come under significant pressure this year due to the softening of demand for its products in the key China market. And judging by its share price weakness this month, it appears that some investors are not overly confident that FY 2020 will be much better. Later this month Blackmores will report its full year results and release its guidance for the next financial year. I would suggest investors keep their powder dry until then.

The CYBG PLC (ASX: CYB) share price tumbled to a multi-year low of $2.57 yesterday. The UK-based bank’s shares have been on the slide this month due to the release of a disappointing quarterly update at the end of July. That update saw CYBG warn investors that a large volume of mortgages have been paid off by customers during the third quarter, resulting in a negative impact on its lending income. In addition to this, recent weakness in the British pound due to no-deal Brexit concerns has also weighed heavily on the bank’s Australian-listed shares.

The Mayne Pharma Group Ltd (ASX: MYX) share price continued its slide and hit a multi-year low of 47 cents on Tuesday. Investors have been selling the pharmaceutical company’s shares this year due to concerns over the underperformance of its key Generics division once again. After a brief recovery, the division’s performance has deteriorated materially in the second half of FY 2019 due to challenging trading conditions. Whilst things will inevitably improve again in the future, I’m not overly convinced that it will be a quick fix. In light of this, investors may want to keep a safe distance for the time being.

If your portfolio needs a lift after these declines then I would be buying one of these hot stocks that have been rated as buys.

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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