The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has dropped more than 4% in the past month, including 0.2% today, as global volatility continues to grip markets.
That’s not all that bad though, when you consider that several companies have seen their share prices sink by a third or more in just over 30 days.
Here’s our take on five of them…
APN Outdoor Group Ltd (ASX: APO)
The out-of-home advertising group has seen its share price sink 40% from $8.24 a month ago to its current levels of around $4.94. Most of the fall came in one day – when the company announced a downgrade to expectations for the 2016 financial year (ending December 2016). That’s what happens when the company fails to live up to hugely lofty expectations.
Estia Health Ltd (ASX: EHE)
The woes of the aged care sector have been well document in several articles on our website. Estia Health has seen its share price crumble 38% in the month to its current price of around $3.22 – mostly due to government-announced changes and cutbacks to the aged care funding mechanism.
Cash Converters International Ltd (ASX: CCV)
The pawn shop owner and personal loan provider has had a tough 5 years, as well as the last month. Over both periods, the share price is down around 30% to its current level of 31 cents. Lawsuits from customers claiming they had been charged usurious rates of interest and an investigation by the corporate cop haven’t helped.
AWE Limited (ASX: AWE)
The oil and gas producer has seen its share price sink more than 31% in the past month to its current level of 60.5 cents. The biggest cause of the fall was a statutory net loss after tax of a whopping $363 million for the 2016 financial year. Most of that was caused by a $291.8 million impairment, but even underlying net profit was a disappointment – coming in at a loss of $67.4 million. Maybe the board should have accepted the takeover offer at 80 cents a share back in May 2016.
Billabong International Limited (ASX: BBG)
The surfwear retailer’s share price has dived 30% to its current level of around $1.12. Much of that came from reporting a loss of $23.7 million for the 2016 financial year, and management appear to have blamed increased tax charges – when it seems clear that earnings before tax were also down.
Apart from APN Outdoor, the other four companies have truly disappointed investors and they probably aren’t bargains at these levels. APN Outdoor, on the other hand, could be perfectly positioned to benefit from the growing outdoor advertising market.
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The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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