With the Australian share market following the US market's lead and sinking lower today, it will come as little surprise to learn that a number of shares have fallen to new 52-week lows.
Two that caught my eye are listed below. Here's why they are making new lows:
The HT&E Ltd (ASX: HT1) share price touched on a new multi-year low of $1.56 during trade on Thursday. The outdoor advertising company has come under pressure this year following the loss of the Yarra Trams contract it had held for six years. Management advised that its loss would impact Here, There & Everywhere's EBITDA by approximately $15 million.
Further to this, the company has been hit with amended tax assessments from the ATO with tax adjustments of $72 million plus interest of $32 million. Although the ATO is yet to determine whether any penalties will be applied, some shareholders appear unwilling to risk it and have headed to the exits. I can't blame them and would suggest investors stay clear of HT&E.
The Myob Group Ltd (ASX: MYO) share price fell to a 52-week low of $3.16 today. The accounting software company appears to have fallen out of favour with investors ever since it was revealed that Bain Capital had offloaded a further 97 million of its shares via a block trade.
This was the second such block trade it made in 2017, after reducing its stake in early 2017 by 100 million shares in a block trade conducted at $3.55 per share. As well as this, the market doesn't appear to see a lot of value in its $180 million acquisition of Reckon Limited (ASX: RKN). Whilst it could prove me wrong, I think it was a poor acquisition and suspect it won't help the company close ground on market leaders XERO LTD (ASX: XRO) and Quickbooks.
