In the last few months the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has been on a bit of a roller-coaster ride with a number of highs and unfortunately an equal amount of lows.
This has left the benchmark index higher by just under 2% for the year. Whilst this is disappointing, spare a thought for the shareholders of the companies listed below. Have they fallen into the buy zone?
The Mayne Pharma Group Ltd (ASX: MYX) share price may have rebounded 5% higher yesterday, but it is still down 33% year-to-date. Whilst I think this could make it a potential bargain buy, a lot will depend on the future of the generic drugs market. A recent update by generic drugs giant Teva Pharmaceuticals painted a reasonably bleak picture for the industry at present plagued by competitive pressures. In light of this, I think it would be best to hold off an investment until its full-year results are released later this month.
The REVA Medical Inc (ASX: RVA) share price fell to a 52-week low of 68.5 cents on Monday. Investors have been heading to the exits in their droves after Boston Scientific allowed its exclusive right to negotiate for distribution of its coronary and peripheral bioresorbable scaffolds to expire. This appears to have the market worried that there may not be as great a commercial opportunity for the scaffolds as previously thought. Whilst I think the scaffolds are a great product, it might be best to stay clear of REVA until the success of its own direct selling are known.
The Vita Group Limited (ASX: VTG) share price has lost 62% of its value this year. This decline was the result of telecommunications giant Telstra Corporation Ltd (ASX: TLS) advising of plans to cut Vita’s remuneration and reorganise its stores into clusters. Whilst this has left its shares trading at just 5x trailing earnings, the likelihood is that Vita is on the cusp of a significant reduction in its earnings. It may prove to be great value at the current share price, but until the ramifications of the remuneration cuts are known, I think investors should steer clear of Vita Group.