Over the last 12 months the All Ordinaries (Index: ^AXAO) (ASX: XAO) is down approximately 4.3% due largely to the market volatility in the latter part of 2018.
While this is disappointing, spare a thought for shareholders of the three shares listed below.
These shares have fallen heavily over the period, are they in the buy zone now?
The Bellamy's Australia Ltd (ASX: BAL) share price is down 43% over the last 12 months. Although I think the infant formula company would be a great long-term investment, investors will have to be very patient. This is because the key driver of its future growth will be the sale of its products on mainland China. In order to do this the company needs its SAMR accreditation. It has been waiting over a year for it to be granted and it remains unclear when it will finally be granted. While I'm optimistic it will be granted before the end of FY 2019, there is a danger that it could take longer and lead to subdued growth in FY 2020 as well.
The BWX Ltd (ASX: BWX) share price has fallen a remarkable 80% since this time last year. Investors have been selling the personal care products company's shares due to the withdrawal of a takeover offer and a surprising deterioration in its business performance. In respect to the latter, at the end of last year the company behind the Sukin skincare brand downgraded its guidance significantly just seven weeks after its previous update. It expects normalised EBITDA to be in the range of $27 million to $32 million in FY 2019, compared to previous guidance of normalised EBITDA broadly in line with FY 2018's $40.3 million. While BWX's shares do look attractive at this level, I plan to wait and see if things improve in the second half before considering an investment.
The Kogan.com Ltd (ASX: KGN) share price is down 45% over the last 12 months. Heavy insider selling and a surprisingly soft start to FY 2019 have been the catalysts for this decline. Things were much worse up until mid-January when its shares surged higher after a trading update revealed a massive improvement during the Christmas trading period. If this strong form carries over into the second half then Kogan could prove to be a great investment at the current level. I would suggest investors wait for a trading update with the release of its half year results later this month.
