The Australian share market has been in fine form in 2019, with the All Ordinaries index one of the best performing indices in the world with a gain of ~18%.
However, not all shares on the index have been able to follow it higher this year.
Three that have been hammered are listed below. Is this a buying opportunity?
The Costa Group Holdings Ltd (ASX: CGC) share price has been amongst the worst performers on the index this year with a decline of 45%. The horticulture company's shares have fallen heavily due to a series of guidance downgrades due to tough trading conditions and pricing pressures. Whilst I'm not convinced that the worst is over for Costa just yet, I do think this risk has been priced into its shares. This could make it worth considering a long-term and patient investment in the company's shares.
The Syrah Resources Ltd (ASX: SYR) share price has lost almost 43% of its value since the turn of the year. Investors have been selling the graphite producer's shares due to concerns over weakening prices of the battery-making ingredient and higher than expected operating costs. In addition to this, a recent capital raising undertaken at a material discount has also weighed on its shares. And with graphite prices unlikely to improve in the near term because of falling demand in China, I suspect that Syrah's shares may not have bottomed yet.
The Wagners Holding Company Ltd (ASX: WGN) share price has sunk a sizeable 41.5% since the start of the year. Investors have been heading to the exits 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 cheaper price and Wagners is required to match it or suspend its supply contract. Wagners has disputed Boral's pricing notice and risks losing a very large customer if its Statement of Claim fails. In light of this, I would stay clear of its shares until the matter is resolved.
