Although the market has pushed notably higher this month, not all shares have managed to follow it higher.
The three shares listed below have fallen heavily this month. Is this a buying opportunity?
The Adacel Technologies Limited (ASX: ADA) share price has crashed 43% lower since the start of this month. The majority of this decline came on Friday following the release of a trading update out of the developer of operational air traffic management systems and training solutions. That update revealed that Adacel expects first half profit before tax to be 65% to 70% lower than the prior corresponding period. While it does expect a stronger second half, full year profit before tax is still forecast to fall 25% to 35%. The loss of a major contract and additional investments have been blamed for the poor performance. While its shares look reasonable value now, its inconsistent performance over the last few years means it’s not a share for me.
The Corporate Travel Management Ltd (ASX: CTD) share price has lost 24% of its value this month after being targeted by a short seller. Although the corporate travel specialist has fought back with two comprehensive rebuttals, investors appear concerned that this isn’t the end of the attack. When the dust settles I think that Corporate Travel Management could be a great option for investors. But for now, I’m going to sit this one out and see how it unfolds over the coming weeks.
The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has tumbled 11.5% lower in November. Investors have been hitting the sell button in a hurry after the pizza chain operator provided an update at its annual general meeting. At the meeting Domino’s revealed that its same store sales were 2.3% higher during the first 17 weeks of FY 2019. This indicates a slowdown in same store sales growth since the trading update given with its full year results. In addition to this, new store openings were lower than expected. But overall, I think the selloff has been a bit of an overreaction and believe it is still a great long-term investment option.
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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 Adacel Technologies Limited and Corporate Travel Management Limited. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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.