The local market may be defying international markets by pushing higher on Wednesday, but not all shares have managed to move into positive territory.
In fact, some have even fallen to 52-week lows or worse. Three shares which have caught my eye today are listed below. Here’s why they are down in the dumps:
The iSentia Group Ltd (ASX: ISD) share price has fallen to a new 52-week low of 75.5 cents today, extending its 12-month decline to a sizeable 62%. Although there has been no real news out of the media monitoring company since its disastrous first-half result, shareholders continue to head to the exits in their droves. And with its core business showing signs of weakness amid heightened competition, I can’t say I’m surprised by this. Its shares may look dirt cheap now at just 8x trailing earnings, but I would suggest investors stay well clear of its shares.
The MYOB Group Ltd (ASX: MYO) share price has hit a 52-week low of $2.72 on Wednesday. The accounting software company has come under heavy selling pressure since the ACCC blocked its acquisition of industry peer Reckon Limited (ASX: RKN). Its shares are now down 24% since the start of the year amid fears it won’t be able to compete with the likes of Quickbooks and Xero Limited (ASX: XRO). It has been a similar story for Reckon as well. Since the ACCC first voiced concerns over the planned acquisition its share price has fallen no less than 31%. I would stay away from both companies as I don’t see them having any competitive advantage.
The Telstra Corporation Ltd (ASX: TLS) share price has crashed to a multi-year low of $2.69 today following a disappointing investor day. The market does not appear to have been impressed with the telco giant’s medium term plan, nor its reluctance to comment on its FY 2019 dividend. While I do see a lot of value in Telstra’s shares at these levels, I think it may be best to wait for the dust to settle before considering an investment. After all, if brokers come out with negative notes following the event, it could lead to further share price declines in the coming days.
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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 Telstra Limited. The Motley Fool Australia owns shares of Xero. The Motley Fool Australia has recommended iSentia 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 Scott Phillips.
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