Earlier today I looked at three shares which have smashed the market in 2019. Not all shares have performed as strongly as these. In fact, some shares have been crushed this year.
Three shares which have fallen heavily in 2019 are listed below. Is this a buying opportunity?
The BINGO Industries Ltd (ASX: BIN) share price is down 16% since the start of the year. Things had been even worse for the waste management company's shares up until a recent rally which narrowed its year to date decline. The selling started in January when the company surprisingly downgraded its full year guidance due partly to the faster than anticipated softening in multi-dwelling residential construction activity across BINGO's key markets. Thankfully, news that the ACCC will not oppose its acquisition of Dial a Dump Industries has led to a rebound in its shares. I think this acquisition will be a game-changer for the company and believe it is worth considering an investment at current levels.
The Blackmores Limited (ASX: BKL) share price has tumbled 24.5% lower in 2019. The catalyst for this decline was the release of a disappointing half year result in February and the resignation of its CEO a few days later. Unfortunately, due to weakness in the China market, Blackmores' performance in the second half is expected to weaken further. Because of this, I intend to stay clear of its shares until its performance improves materially.
The Eclipx Group Ltd (ASX: ECX) share price has dropped 24% this year. The shares of the provider of fleet, equipment leasing and management, vehicle rentals and online auction services have fallen heavily since the release of its FY 2019 net profit after tax and before amortisation (NPATA) guidance. Softer retail market conditions and weakness in insolvency and industrial auctions means NPATA is expected to be flat year on year. Whilst its shares look good value now, I would wait to see if trading conditions improve before investing.
