While the likes of A2 Milk Company Ltd (ASX: A2M) and Flight Centre Travel Group Ltd (ASX: FLT) may have raced away to all-time highs today, not all shares have been so lucky.
In fact, the three shares listed below have fallen to 52-week lows or worse during trade on Thursday. Here's why:
The Myer Holdings Ltd (ASX: MYR) share price has fallen 5% to a new low of 49 cents this morning. The shares of the embattled retailer continue to come under pressure after a series of profit downgrades led to the resignation of its CEO. And although Solomon Lew is attempting to gain enough support to throw out the current board, judging by its share price performance, investors don't appear to believe that a new board will fix its issues. Nor do I, unfortunately. I think department stores are a thing of the past now and investors should stay clear of Myer's shares.
The Steadfast Group Ltd (ASX: SDF) share price dropped to a 52-week low of $2.33. The general insurance broker's shares have fallen significantly this week after the release of its half-year results. Although Steadfast reported a 9.1% increase in underlying earnings thanks to record gross written premium growth, investors appear to be concerned by its reported figure. Reported net profit after tax fell 11% to $33.8 million due to lower non-trading gains. Whilst it looks a lot better value now, it's not an area of the market that I find attractive.
The Slater & Gordon Limited (ASX: SGH) share price touched on a new low of $2.29 this morning. Shareholders have been heading to the exits in their droves since the struggling law firm appeared to warn that its share price was overvalued earlier this month. It stated that it "notes the current share price and market capitalisation of the Company and reminds shareholders that it released a significant amount of information to the market in connection with its recently completed recapitalisation transaction." I suggest investors take heed of this warning.
