So far this year the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a reasonably mixed time and finds itself up just 2%.
Whilst this is disappointing, spare a thought for the shareholders of the two shares listed below which have fallen sharply this year. Are they in the bargain bin?
The Aconex Ltd (ASX: ACX) share price has tumbled 22% since the start of the year. The majority of this decline came in January when the software-as-a-service company downgraded its full-year revenue guidance to between $160 million and $165 million from $172 million to $180 million. This was down to weaker sales in the U.K. and Americas regions. But thankfully things appear to have stabilised in these regions, allowing management to reiterate its full-year guidance in May.
Whilst its shares are by no means cheap, I do believe there could be significant upside potential for them in the long-term. After all, management believes that its platform can accelerate the pace of product delivery and help build five hospitals for the price of four. With results of that nature I expect demand for its software will continue to rise.
The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 26% year-to-date due to concerns over allegations of price-fixing and the Trump Administration's view on generic drugs. Whilst I think the pharmaceutical company is a high-quality one with arguably dirt cheap shares, I believe its future success will depend a lot on whether President Trump forces the price of generic drugs down significantly.
If he does then it could ultimately mean the company overpaid for the portfolio of generic drugs it acquired last year. Because of this I feel the prudent thing to do is keep it on your watchlist and wait to see whether changes are made over in the United States.
