Earlier today I looked at three shares that had doubled in value over the last 12 months.
Not all shares have fared as well as these market beaters. In fact, going the other way have been the three shares listed below which have more than halved in value.
Is this a buying opportunity?
The AMP Limited (ASX: AMP) share price has sunk 55% lower since this time last year. Investors have been heading to the exits in their droves after the financial services company came under fire at the Royal Commission. While the remediation costs for the fees for no service scandal are bad enough, the reputational damage is what has me most concerned. I fear it may take years before the company is able to move on fully from the Royal Commission. In light of this, I would suggest investors stay clear of AMP no matter how cheap its shares may look on paper.
The iSentia Group Ltd (ASX: ISD) share price has crashed 72% lower over the last 12 months. Investors have been selling the media intelligence company's shares in a hurry after its operating performance continued to deteriorate. In FY 2018 the company posted a sizeable 31% decline in EBITDA and advised that it expects similar declines again this year. While management recently stated at its annual general meeting that it was confident that the company would overcome its challenges, I would suggest investors wait for proof before considering an investment.
The Syrah Resources Ltd (ASX: SYR) share price has fallen 62% since this time last year. As well as being caught up in a battery materials selloff, the market is likely to have been disappointed with the countless production disruptions the graphite miner has suffered at its Balama project this year. The good news is that the company does look to have moved on from this now. However, until I've seen the price that the company is commanding for its graphite I'll be holding off an investment. There are concerns that its graphite prices may be lower than expected.
