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.
