As an optimist I tend to spend a lot of my time writing about the shares I like. But successful investing isn't just picking winners, it is also about avoiding losers that destroy wealth.
With that in mind, here's why I'm not buying these ASX shares:
Amaysim Australia Ltd (ASX: AYS)
This junior telco company has seen its share price almost halve in value over the last 12 months. Investors were hitting the sell button in a hurry earlier this year after a disappointing first-half result which was driven largely by a surprise 15% reduction in the average revenue per user from its mobile segment. Unfortunately, with TPG Telecom Ltd (ASX: TPM) now entering the mobile market, I suspect that trading conditions could become even harder over the next 12 months and weigh heavily on its performance and share price.
Flight Centre Travel Group Ltd (ASX: FLT)
Whilst I think this travel agent is a quality company, I'm not a fan of its current valuation after an impressive 51% gain over the last 12 months. This share price gain means that Flight Centre's shares are now changing hands at just over 20x estimated FY 2019 earnings. I think this is a touch expensive for its current growth profile and feel there are better options in the industry elsewhere. I expect some investors may take profit and move into its rivals if Flight Centre doesn't outperform expectations in August.
Ramsay Health Care Limited (ASX: RHC)
While this private hospital operator's shares have fallen almost 30% from their 52-week high, I wouldn't be in a rush to invest just yet. All of Ramsay's operations are going through tough trading conditions right now and I don't expect things to improve in a hurry. Especially at home in Australia where the company generates the majority of its revenue. With private hospital insurance participation rates on the decline due to affordability issues, I feel Ramsay will struggle for growth in the short to medium term.
