The last 30 days have been pretty poor for Australia's listed companies, especially those exposed to spending on oil and iron ore. The S&P/ASX 200 (INDEXASX: XJO) has fallen a little over 3% over the last month but some of Australia's largest and most trusted names have plunged to 12-month lows.
The factors behind the companies' declines are fairly easy to pinpoint but are investors overreacting? Could today be a perfect time to invest in these down and out stocks?
Mid-cap oil and gas exploration company Beach Energy Ltd (ASX: BPT) has been hit hard by the falling oil price. The share price has fallen 15% to sit at a 12-month low.
Outsourcing network Freelancer Ltd's (ASX: FLN) shares recently fell to an all-time low of 60 cents. The shares have mildly recovered, but investors are waiting for more concrete evidence that the company can grow fast enough.
JB Hi-Fi Limited's (ASX: JBH) shares have fallen 12% over the last month following a disappointing sales performance from its rivals and concerns that like-for-like sales could drop over the next 12 months. I feel the company is being treated harshly and will rebound soon.
Casino group Crown Resorts Ltd (ASX: CWN) has been hit with a perfect storm. 'Lucky' punters have raked in more wins than expected, gaming revenue is falling in the group's key Macau casinos, and Chairman James Packer continues to complain about taxation in Australia. These short-term issues should pass relatively quickly.
Myer Holdings Ltd's (ASX: MYR) shares have fallen a further 13% over the past month as investors exit in droves. Myer is also facing problems attracting as many customers as it used to in the face of increased competition from overseas rivals moving into the Australian market.
Accounting software provider XERO FPO NZ's (ASX: XRO) shares have fallen to a new 12-month low after analysts expressed concern about the group's US operations. I expect that over time the group will lead the way in the US.
These companies could well be much, much larger in five years' time if the Australian economy recovers and the problems holding each back subside.
