The local share market may be trading at multi-year highs, but not all shares have been able to follow it higher.
In fact, a number of shares are trading at 52-week lows or worse. Here’s why they are down in the dumps:
The Link Administration Holdings Ltd (ASX: LNK) share price sank to an all-time low of $5.32 on Thursday. The administrations services company’s shares have come under significant selling pressure after the recent release of a disappointing trading update. Due to a number of factors, but predominantly the negative impact of Brexit on its UK-based business, the company revealed that it expects to report operating NPATA of between $195 million and $205 million in FY 2019. This compares to $206.7 million in FY 2018.
The Galaxy Resources Limited (ASX: GXY) share price tumbled to a multi-year low of $1.29 yesterday. This lithium miner’s shares have crashed lower over the last 12 months due to further weakness in lithium prices due to increasing supply and subdued demand. Unfortunately for Galaxy and its lithium peers, prices have been tipped to continue their decline over the remainder of 2019. Another catalyst for this share price weakness was news that Galaxy was unable to find a joint venture partner for its Sal de Vida asset.
The Reject Shop Ltd (ASX: TRS) share price continued its slide and hit a multi-year low of $2.00 on Thursday. The discount retailer’s shares were hammered when it revealed that tough trading conditions had led to its sales falling well below expectations. Furthermore, Reject Shop warned that its gross margin had fallen because the expected benefits from initiatives failed to land with consumers. This ultimately led to the embattled retailer downgrading its full year guidance to a loss after tax of between $1 million and $2 million, compared to prior guidance of net profit after tax of between $3.1 million and $4.1 million.
Need a lift after these declines? Then check out these top shares that are on fire and tipped to keep on climbing.
The $700 billion “war on cash” is on… and even The New York Times is calling it “a goldmine of staggering proportions”…
That’s why The Motley Fool has just released a brand-new research report: “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.” Inside, you’ll find 2 expert-picked ASX shares poised to profit from this sweeping tech revolution.
Heck, stock #1 is already up 204% in just the last two years. While Stock #2 has climbed an eye-watering 954% since 2015 alone…
Yet we’re convinced the sheer biggest returns could be still ahead, with 10X or more potential profits still on the table. Simply click the link below now and we’ll show you how to snap up this timely (and potentially highly profitable) new research for FREE.
Click here to snap up your copy of “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.”
James Mickleboro owns Galaxy shares. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.