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Australia’s 5 biggest stock losers of 2014

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)

southern cross
Source: Google Finance

Year-to-date decrease: 33%

Market Capitalisation: $796 million

P/E Ratio: 10

Industry: Media

#4 Regis Resources Limited (ASX: RRL)

Regis Resources
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)

Mermaid Marine
Source: Google Finance

Year-to-date decrease: 41%

Market Capitalisation: $741 million

P/E Ratio: 9

Industry: Transportation

#2 Atlas Iron Limited (ASX: AGO)

Atlas
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)

Arrium
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.

The Motley Fool's regular readers will know we LOVE big dividend yields. But only if the companies which pay them are also primed for sustainable rapid growth. It's fair to say, we don't like to see any investor lose money. That's why we're willing to give you our best dividend stock idea for 2014 - 2015 FREE! Just click here to download your free copy of "The Motley Fool's Top Dividend Stock for 2014-2015" today.

Motley Fool Contributor Owen Raszkiewicz (happily) does not have a financial interest in any of the mentioned companies. 

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