The All Ordinaries (Index: ^AXAO) (ASX: XAO) may have carved out a solid gain of almost 6.5% year-to-date, but not all shares on the index have fared so well.
In fact, the two shares below have been amongst the worst performers on the market during this time.
Does this make them bargain buys now?
The iSentia Group Ltd (ASX: ISD) share price has plunged around 57% this year as the media monitoring company's performance deteriorates further. First it was the disastrous King Content acquisition weighing on its performance, now it is its core business.
Due to revenue pressures from higher levels of customer churn, management expects FY 2018 EBITDA to be as much as 22% lower compared to a year earlier. This will be similar to FY 2017 when iSentia posted a 21% decline in EBITDA. Whilst its shares do look dirt cheap, I would suggest investors hold off an investment until it returns to growth again.
The Mayne Pharma Group Ltd (ASX: MYX) share price has lost just over half of its value since the start of the year. Investors have been heading to the exits in their droves due to the negative impact of price weakness in the lucrative U.S. generic drugs market. This has been caused by the consolidation of wholesalers and retail pharmacy chains, leading to around four purchasers controlling upwards of 90% of the supply.
While things cannot carry on like this for too long as it isn't sustainable for generic drug companies like Mayne Pharma and Teva Pharmaceutical, I'm not convinced that the worst is over just yet. In light of this, I wouldn't be a buyer of its shares just yet despite how cheap they appear.
