Over the last 30 days market volatility has returned to the ASX 200 and led to the benchmark index falling 2.6%.
While this is disappointing, spare a thought for shareholders of the three shares listed below.
These shares have been thoroughly beaten down during this time and been amongst the worst performers on the ASX 200. Is this a buying opportunity?
The Corporate Travel Management Ltd (ASX: CTD) share price is down 21% since this time last month. Investors have been selling this corporate travel specialist’s shares in a hurry after it was targeted by a short seller. Although the company has given two comprehensive responses to VGI Partners’ attacks, investors appear concerned that this isn’t the end of the matter. While I do think that its shares are trading at a very attractive price, I intend to wait for things to blow over before considering an investment.
The Lendlease Group (ASX: LLC) share price has crashed 27.5% lower over the last 30 days. The catalyst for this decline was an announcement out of the international property and infrastructure company advising that it had identified further underperformance in the financial position of its Engineering and Services business. As a result, the company is expected to take a provision in the order of $350 million after tax for the first half of FY 2019. Management blamed the underperformance on the further deterioration of a small number of projects that it had previously identified. Lendlease’s shares do look reasonably priced now, but I would wait for signs of improvement before considering an investment.
The Super Retail Group Ltd (ASX: SUL) share price has dropped 25.5% since this time last month. The retail conglomerate’s shares fell heavily at the end of last month when its CEO announced plans to retire. The exit of the long-serving and popular executive appears to have worried investors, especially with the Macpac integration still ongoing. While the news was disappointing, I think the selloff has been overdone and has left Super Retail’s shares trading at a very attractive 10x trailing earnings. This looks especially cheap given that at the same meeting the company reported solid like for likes sales growth across its business so far in FY 2019.
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Returns as of 6th October 2020
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia owns shares of Super Retail Group 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.
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