The Australian share market may have pushed higher on Tuesday, but not all shares were able to follow it higher.
Three shares that dropped to 52-week lows yesterday are listed below. Here's why they made this unwanted milestone:
The Flight Centre Travel Group Ltd (ASX: FLT) share price dropped to a 52-week low of $37.82 on Tuesday. The travel agent's shares have come under significant selling pressure this year due largely to the underperformance of its Australia Leisure business. Its poor performance recently led to management downgrading its full year profit guidance. Flight Centre now expects FY 2019 profit before tax to be between $335 million and $360 million, compared to prior guidance of between $390 million and $420 million. The mid-point of this range represents a 10% decline on the prior corresponding period.
The THC Global Group Ltd (ASX: THC) share price tumbled to a 52-week low of 41 cents yesterday. Investors may be disappointed with the lack of progress the diversified cannabis company has been making in respect to revenue generation. In its first quarter of FY 2019, the company posted cash receipts of $843,000, but net cash outflows from operating activities of $1.8 million. I would suggest investors stay well clear of its shares until it is cash flow positive.
The Wagners Holding Company Ltd (ASX: WGN) share price dropped to a 52-week low of $1.80 on Tuesday. Investors have been heading to the exits in their droves after the building products company revealed a cement supply pricing dispute with Boral Limited (ASX: BLD). Boral has sourced cement from a different supplier at a materially cheaper price and Wagners is required to match it or suspend its supply contract. Wagners has disputed Boral's pricing notice and filed a Statement of Claim in the Supreme Court of Queensland against it. As the loss of the contract could have a big impact on its future profits, I can't say I'm surprised to see many investors selling their shares.
