Motley fool...today9 Jun 2023 23:57
2 fallen angels at 52-week lows to buy in a Stocks & Shares ISA
Jon Smith
Fri, 9 June 2023 at 12:53 pm BST·3-min read
In this article:.....has seen a fall in value over a period of time. These can sometimes make great long-term purchases to include in a Stocks and Shares ISA. Given the exemption from capital gains tax when selling stocks for a profit, if the shares do rally in coming years then there’s large profit potential. Here are two that I like right now.
A controversial inclusion
A month ago, I wrote about the falling share price of ASOS (LSE:ASC). Despite the stock being at 52-week lows at that point in time, I said that I thought we were seeing panic selling and that the stock could fall further. I thought it was a good long-term buy, but would wait paitently to see how it traded over the coming months.
It has fallen 46% over the past month. Over the past year, it’s now down 77%.
So why do I think it’s the right time to buy now? To begin with, I’m never going to perfectly pick the bottom. Waiting for a month has certainly provided a better price to buy, but I don’t want to be overly greedy and keep waiting for further potential losses.
It appears I’m not alone either. Just this week it was reported that Frasers Group has increased its shareholding in the business. Another news piece has commented that ASOS could see bid approaches.
Of course, the half-year results showing a loss before tax isn’t doing the company any favours. Yet I fundamentally believe that it’s well positioned and entrenched in the fast-fashion space, and I don’t see this changing
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