Although it has been a bumpy ride, in the last 30 days the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to carve out a 1.5% gain.
Acting as a drag on the index have been four shares in particular. These four shares are the worst performers on the index during the period, posting declines ranging from 18% to 38%. But could a turnaround of fortunes be in sight for any of them?
Cardno Limited (ASX: CDD)
Leading infrastructure and environmental services provider Cardno has been the worst performer on the S&P/ASX 200 during the period with a 38% drop in its share price. The decline was partly a result of a market update which revealed a significant drop in earnings guidance for the year. It lowered its EBITDA guidance by $15 million to between $40 million and $45 million. It is trying to raise $92.5 million at 40 cents per share in a capital raising. A significant discount to the current share price. The process is ongoing and I don't believe there is a turnaround in sight at present.
Flight Centre Travel Group Ltd (ASX: FLT)
Flight Centre shares are down 18% in the last 30 days and have yet to rebound following its full year profit downgrade a couple of weeks ago. Flight Centre's management advised that it now expects to deliver a 2% to 5% drop in full year profit. It has placed the blame on soft demand caused by the Australian election, the Brexit vote, and the Zika virus. Personally, I believe these headwinds are temporary and that long-term buy and hold investors could pick up a bargain today at the current price.
FlexiGroup Limited (ASX: FXL)
Shares of the leading finance and leasing company have dropped 21% in the last 30 days after it warned of systems and goodwill impairments to the sum of $18.4 million. These impairments were the result of the discontinuation of its paymate, enterprise, and telecommunication business segments. It also took a $15.7 million provision for the lifetime loss in recovering its enterprise portfolio value, meaning its statutory profit after tax is now expected to drop by around 35% to $54.2 million. FY 2017 looks set to be a year of transition, but management expects the company to return to double-digit cash profit growth from FY 2018 onwards. In light of this, at the current price I believe FlexiGroup looks like an interesting option for investors.
UGL Limited (ASX: UGL)
The shares of engineering and services company UGL are down almost 35% in the last 30 days, with much of these declines coming in the last few days. This was due to management warning of potential contract losses to the tune of $200 million from its Inpex Ichthys liquified natural gas project. As negotiations are ongoing, I believe it is far too soon to consider an investment in UGL and would instead focus my attention elsewhere in the industry.
