Earlier today I picked out the best performing shares on the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the last 12 months.
Those shares didn't just beat the S&P/ASX 200 and its 11.8% gain, they absolutely crushed it. The a2 Milk Company Ltd (Australia) (ASX: A2M) share price was the worst performer of the bunch with an 80% gain.
Unfortunately not all shares have fared so well during the last 12 months. In fact the following three shares have fallen the hardest, making them the worst performing shares on the S&P/ASX 200 during the period. Here's why:
The Bellamy's Australia Ltd (ASX: BAL) share price has tumbled a massive 55% in the last 12 months. This time last year the infant formula company was a market darling and looking unstoppable. But poor decisions from an inexperienced management team ultimately led to its incredible fall from grace in the lucrative Chinese market. While the company could come back like a phoenix from the flames, I would caution against an investment at this stage.
The iSentia Group Ltd (ASX: ISD) share price has fallen a whopping 59% since this time last year. The reason for the sharp sell-off in the media monitoring company's shares was the sudden downturn in its recently acquired content marketing business. The business actually started incredibly well, performing ahead of both the market and management's expectations. But since then things have gone terribly wrong, resulting in management predicting a $3 million full-year operating loss from the segment. Whilst I like its media-monitoring business, I wouldn't invest until the performance of its content marketing business improves.
The Vocus Group Ltd (ASX: VOC) share price has been the worst performer on the S&P/ASX 200 during the last 12 months with a 61% decline. This means the telco company's shares are trading at some of their lowest levels in over three years and at a level which I think could prove to be a bargain. While there are concerns over the integration of its acquisitions and NBN margins, I feel the current share price provides investors with a compelling risk/reward. As such I would consider it a buy today.
