The S&P/ASX 200 index has been a positive performer over the last 12 months, rising a solid 6.8% excluding dividends.
Unfortunately, not all shares on the benchmark index have managed to climb higher. The three shares listed below, for example, have all more than halved in value over the period. Here's why:
The Bellamy's Australia Ltd (ASX: BAL) share price has tumbled a sizeable 52.5% since this time last year. The infant formula company's shares have come under significant selling pressure due to the negative impact that delays in being granted the SAMR accreditation required to sell its products in mainland China has had on its profits. Although the company appears confident that it will eventually be given the thumbs up by Chinese regulators, it is unclear when this will be. Despite this, I think it could be worth considering a patient long term investment in Bellamy's shares.
The Eclipx Group Ltd (ASX: ECX) share price has been the worst performer on the index with a decline of 71% over the last 12 months. Investors sold off its shares after the vehicle fleet leasing, fleet management and diversified financial services provider released another bitterly disappointing market update. In addition to this, the breakdown of merger talks with rival McMillan Shakespeare Limited (ASX: MMS) has weighed heavily on its shares. Whilst its shares look cheap, I would wait until there has been a major improvement in its performance.
The Syrah Resources Ltd (ASX: SYR) share price has lost 63% of its value over the last 12 months. Investors have been heading to the exits in their droves amid concerns about the oversupply of graphite. Furthermore, earlier this year the company released an update which revealed higher than expected operating costs and softer than expected graphite prices. With demand for battery making ingredients continuing to soften, investors don't appear confident that things are going to improve in the near term. Nor do I, so I would stay clear of the company's shares for the time being.
