15 shares you should have avoided in 2016

These 15 companies have made their shareholders very unhappy in 2016!

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Despite enjoying a nice 'Trump' and 'Santa' rally for most of December, 2016 has nonetheless been an extremely volatile year for share market investors.

Unsurprisingly, a number of very popular shares have been hit pretty hard over the course of the year as they failed to live up to market expectations.

Since I highlighted some of the best performing shares yesterday, I thought it would only be fair to highlight some of 2016's biggest losers today.

Here they are:

Company Market Capitalisation 2016 Return P/E Ratio Dividend Yield
Wellard Ltd (ASX: WLD)
$90 million -83.8%
iCar Asia Ltd (ASX: ICQ)
$80.2 million -74%
Slater & Gordon Limited (ASX: SGH)
$82.8 million -71.5%
Paladin Energy Ltd (ASX: PDN)
$132 million -67.9%
Rhipe Ltd (ASX: RHP)
$68.6 million -66.5% 81.4
Sirtex Medical Limited (ASX: SRX)
$825 million -64% 15.7 2.0%
Martin Aircraft Company Ltd (ASX: MJP)
$88.9 million -62.7%
Shine Corporate Ltd (ASX: SHJ)
$129 million -61.6% 6.1 3.9%
MG Unit Trust (ASX: MGC)
$190 million -60.8% 4.8 8.0%
Mobile Embrace Ltd (ASX: MBE)
$66.4 million -60.5% 12.7
Estia Health Ltd (ASX: EHE)
$587 million -60.4% 10.1 9.4%
Touchcorp Ltd (ASX: TCH)
$137 million -58.5% 12.4
CSG Limited (ASX: CSV)
$236 million -56% 7.3 12.2%
Capitol Health Ltd (ASX: CAJ)
$67.9 million -53.6% 11.9
Mcgrath Ltd (ASX: MEA)
$117 million -50.5% 9.2 5.2%

While this is a pretty sorry looking list of shares, it does highlight the importance of diversification when it comes to investing in the share market.

Although it is nearly impossible to avoid owning one or two losers each year, a well diversified portfolio will ultimately help you to limit your downside risk should a particular share lose 30%, 40% or 50% — sometimes in a single day.

In any case, shareholders who own any of those shares today must ask themselves if the shares are likely to make a meaningful recovery or are there better options elsewhere?

Personally, I wouldn't be rushing out to buy any of those shares right now as there does not appear to be an easy path to recovery for any of them.

With that said, Sirtex Medical, Mobile Embrace and Touchcorp remain good candidates as 'turnaround plays' and I would happily keep them on my list of shares to watch in 2017.

Motley Fool contributor Christopher Georges owns shares of SHINE CORP FPO. The Motley Fool Australia owns shares of TOUCHCORP FPO. 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »