The market may have its 52-week high within sight, but not all shares on it have been performing so positively.
Three shares which have been thoroughly beaten down over the last 12 months are listed below. Are they too cheap to ignore?
The Ainsworth Game Technology Limited (ASX: AGI) share price is down 54% over the last 12 months. The pokie machine developer has come under heavy selling pressure after it released a surprisingly weak trading update earlier this year. Management advised that competitive activity and delays in regulatory approvals and game releases means that full-year profit will be down significantly year-on-year in FY 2018. Since then the company has had a larger than expected order from Churchill Downs Incorporated that has helped lift its profit before tax guidance from $36 million to $39 million. However, this is still a decline of 32% on the $57.4 million it achieved in FY 2017. I would suggest investors stay clear of the company until it returns to consistent growth.
The Catapult Group International Ltd (ASX: CAT) share price has lost 40% of its value since this time last year. Numerous factors have weighed on the sports analytics company’s shares this year including insider selling, a capital raising, and softer than expected growth. There are signs that Catapult could be through the worst of it now, though. Furthermore, I’m optimistic that the aforementioned capital raising will be the last the company needs for working capital purposes and expect it to become profitable in the near future. However, the company has a tendency to disappoint, so I’ll be sitting this one out until it achieves profitability.
The Greencross Limited (ASX: GXL) share price has dropped 31% lower during the last 12 months. The integrated pet care company has seen its shares sink lower after a weak trading update in May revealed a sudden deterioration in the performance of its standalone veterinary clinics. This has been interpreted as a sign that management’s in-store veterinary clinic rollout strategy isn’t working as planned. I would suggest investors stay clear of Greencross until there is a big improvement in its performance.
Need a lift after these declines? Then I would buy one of these three mid cap growth stars.
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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 Catapult Group International Ltd and Greencross Limited. 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.