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Why these 3 ASX shares have fallen more than 50% this year

Earlier today I had a look at a number of shares on the All Ordinaries (Index: ^AXAO) (ASX: XAO) which have more than doubled in value this year.

Unfortunately not all shares performed as well as these. In fact, a number of shares have been thoroughly beaten down this year.

Here’s why these three shares are down over 50% so far this year:

The Retail Food Group Limited (ASX: RFG) share price has fallen 63% since the start of the year. The food and beverage company’s shares have sunk like a stone this year after a series of negative media reports sent shareholders to the exits in their droves. While they have begun to recover now, I wouldn’t be in a rush to invest as I feel the impact of these reports will be felt for a number of years.

The Thorn Group Ltd (ASX: TGA) share price is down 58% in 2017 largely on the back of its disappointing half-year result. The financial services company reported a loss of $9.7 million for the first-half, compared to a half-year profit of $15 million during the prior corresponding period. This led to a sizeable cut to its dividend. Things do appear to improving, but it would take a brave investor to snap up shares in my opinion.

The Xenith IP Group Ltd (ASX: XIP) share price has lost 55% of its value so far this year. A disappointing start to FY 2018 has largely been the catalyst for this decline. Due to disruptions with its recent acquisitions, issues rebalancing current capacity against current and anticipated workflows, and foreign exchange headwinds, EBITDA is expected to be between $18 million and $22 million in FY 2018. This is short of what the market was expecting given its acquisitions. I would hold off investing until the intellectual property services company’s performance improves.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Retail Food Group Limited. The Motley Fool Australia has recommended Xenith IP Group Ltd. 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.