Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has been in good form recently and has the 6,000 points mark in its sights, not all shares have been able to follow the market higher.
In fact, two shares in particular have sunk like stones in recent months. Are they too cheap to ignore now?
The iSentia Group Ltd (ASX: ISD) share price has plunged almost 65% since the start of the year. Although its shares have been down in the dumps all year following problems with its content marketing business, they fell significantly last month after a disappointing trading update revealed that its core business is struggling.
According to the release, iSentia's core business is suffering from revenue pressures as a result of higher levels of customer churn. As a result, EBITDA is expected to be down by as much as 22% in FY 2018. While its shares do look dirt cheap now, I would suggest investors wait for signs of a turnaround in its core business before making an investment.
The Telstra Corporation Ltd (ASX: TLS) share price has lost almost 32% of its value in 2017 amid concerns over NBN margins, a $3 billion future earnings gap, and its well-documented dividend cut. While the gap in its earnings will not be easy to fill, I believe the Internet of Things market will help offset some of this decline.
So with the bad news flow out of the way, its shares changing hands at just 10x trailing earnings, and an expected 6.3% fully franked dividend in FY 2018, I think now could be a great time to consider an investment in the telco giant.
