Since the turn of the year the S&P/ASX 200 index has been in fine form and has climbed an impressive 20%.
Unfortunately, not all shares on the index have been able to follow it higher.
The three ASX shares listed below have all been hammered this year, is this a buying opportunity?
The Blackmores Limited (ASX: BKL) share price has come under pressure this year and fallen by a sizeable 26%. The health supplements company's shares were sold off in February following the release of a disappointing half year update and guidance for the full year. Blackmores blamed the sudden deterioration in its performance on softening demand in China. This softening demand was evident in the third quarter when Blackmores posted a 43.3% decline in third quarter profit after tax to $9.9 million. I'm not convinced the worst is over just yet, so I intend to hold out until at least the release of its full year results in August before considering an investment.
The Costa Group Holdings Ltd (ASX: CGC) share price has been the worst performer on the benchmark index this year with a decline of 45%. The horticulture company's shares have come under pressure following a series of guidance downgrades due to tough trading conditions, operational issues, and pricing pressures. As with Blackmores, I'm not completely convinced that Costa is over the worst of its issues yet. However, I feel this has been reflected in its share price and it could be worth considering a small and patient investment in the company's shares.
The Mayne Pharma Group Ltd (ASX: MYX) share price has crashed 31% lower since the start of the year. The pharmaceutical company's shares have been sold off this year after the recovery of its key Generics Products division proved to be short-lived. In May the company advised that the division had been underperforming expectations significantly. According to the update, during the first four months of the second half the division has posted a 32% decline in revenue compared to the prior corresponding period. This has been blamed on challenging trading conditions. I would suggest investors wait for a sustained improvement in trading conditions before considering an investment.
