Over the last 12 months the All Ordinaries index has been a positive performer and has risen a sizeable 7.5%. If you include dividends this return stretches to approximately 11.5%.
Unfortunately, not all shares on the index have fared as well. The three shares listed below, for example, have fallen heavily during this time. Is this a buying opportunity?
The Bellamy's Australia Ltd (ASX: BAL) share price has fallen 42% since this time last year. The infant formula company's shares have come under pressure due to delays in gaining the SAMR accreditation required to sell its products in mainland China. This has led to its sales and profits falling well short of expectations in FY 2019 and could impact FY 2020's results if its organic formula doesn't receive accreditation in the near future. I'm optimistic that SAMR accreditation is coming and expect it to lead to strong sales growth. This could make it worth considering a small and patient investment in Bellamy's shares.
The BWX Ltd (ASX: BWX) share price is down a massive 73% over the last 12 months. The personal care products company's shares have been sold off following the sudden deterioration in sales of its key Sukin brand. Unfortunately, after a brief improvement earlier this year, the company has begun to struggle again and recently downgraded its full year earnings guidance. Although its shares look reasonably cheap at this level, I would suggest investors wait for a sustained improvement in its performance before considering an investment.
The Galaxy Resources Limited (ASX: GXY) share price has fallen a sizeable 29% since this time last year. Investors have been selling Galaxy and the rest of the lithium miners due to a sharp decline in lithium prices due to increasing supply and subdued demand. In addition to this, Galaxy disappointed the market in April when it revealed that it had failed to find a joint venture partner for its Sal de Vida asset. Whilst I think that Galaxy would be a great investment if lithium prices improve, it is worth noting that lithium giant SQM recently suggested that prices could fall a further 20% this year.
