Normally, setting a New Year's resolution to invest for your future is a wonderful thing. However, as you're about to see, it can also result in massive losses for those of us unfortunate enough to pick the wrong stocks.
Here are the five worst ASX stocks with a market capitalisation over $500 million you could've picked to buy on January 2, 2014.
#5 Southern Cross Media Group (ASX: SXL)
Source: Google Finance
Year-to-date decrease: 33%
Market Capitalisation: $796 million
P/E Ratio: 10
Industry: Media
#4 Regis Resources Limited (ASX: RRL)
Source: Google Finance
Year-to-date decrease: 37%
Market Capitalisation: $918 million
P/E Ratio: 7
Industry: Materials (gold)
#3 Mermaid Marine Australia Limited (ASX: MRM)
Source: Google Finance
Year-to-date decrease: 41%
Market Capitalisation: $741 million
P/E Ratio: 9
Industry: Transportation
#2 Atlas Iron Limited (ASX: AGO)
Source: Google Finance
Year-to-date decrease: 45%
Market Capitalisation: $600 million
P/E ratio: 7
Industry: Materials (iron ore)
#1 Arrium Ltd (ASX: ARI)
Source: Google Finance
Year-to-date decrease: 54%
Market Capitalisation: $1.12 billion
P/E ratio: 3
Industry: Materials (iron ore)
Here's ONE WINNER for 2014
All of these companies' share prices fell for one reason: they were selling a product which fewer people wanted. Iron ore, gold, mining services and free-to-air television. While some investors choose to bet against the herd and believed the market was overplaying the adverse macroeconomic headwinds facing these businesses, many of us have been busy positioning our portfolios for long-term success by buying companies with competitive advantages and HUGE dividend yields.
