The S&P/ASX 200 index has been in fine form in 2019, rising an impressive 20% since the turn of the year.
Unfortunately, not all shares on the benchmark index have been able to follow it higher. The three shares listed below have been beaten down this year, is this a buying opportunity?
The AMP Limited (ASX: AMP) share price has continued its slide in 2019 and has fallen a further 27% since the start of the year. This means the embattled financial services company's shares have now dropped a massive 69% over the last three years. The main catalyst for its decline this year was recent news that the RBNZ had blocked the sale of its AMP Life business to Resolution Life. In response to the news, the company has suspended its interim dividend and there is speculation that a capital raising will be required in the near future to fund its turnaround strategy. In light of this, I would stay well clear of its shares.
The Speedcast International Ltd (ASX: SDA) share price has lost 34% of its value since the start of the year. This year's decline means the satellite communications company's shares have now dropped 68% over the last 12 months. Investors have been hitting the sell button in their droves this year after Speedcast once again downgraded its guidance. Speedcast now expects adjusted 2019 EBITDA to be in the region of US$140 million to US$150 million, compared to its prior guidance of $160 million to $171 million. Whilst I think that Speedcast's shares are good value now, I'm not a buyer due to its unreliable performance over the last 12-18 months.
The St Barbara Ltd (ASX: SBM) share price has crashed 22% lower since the turn of the year. The catalyst for this decline was a downgrade to its production guidance earlier this year due to issues at its Gwalia mine. Consolidated gold production in FY 2019 is now expected to be approximately 355,000 ounces, compared to its previous guidance of between 365,000 ounces and 375,000 ounces. I think the selloff has been overdone and has left St Barbara trading at a very attractive level, especially given the positive outlook of the precious metal.
