The Australian share market certainly has been on form this year. Since the start of the year the All Ordinaries index has gained an impressive 20.3%.
Not all shares have been so lucky, though. The three listed below have been crushed in 2019. Is this a buying opportunity?
The AMP Limited (ASX: AMP) share price is down 25% since the start of the year. The embattled financial services company’s shares have come under significant pressure over the last 12 months due to the negative impacts of its appearance at the Royal Commission and the subsequent fund outflows it has experienced. A highly dilutive $650 million capital raising has also weighed heavily on its shares. Whilst I think things are looking a lot better for the company now, it is still too soon for me to consider an investment. I intend to wait to see if its turnaround succeeds before looking at an investment.
The Citadel Group Ltd (ASX: CGL) share price has sunk 47% lower since the start of the year. Investors have been selling the information management specialist’s shares due to its very disappointing performance in FY 2019. Citadel posted total revenue of $99.2 million and net profit of $10.9 million for the financial year ending June 30, 2019. This was a year on year decline of 7% and 44%, respectively, and caused by delays in project extensions and lower customer spends partly related to the impact of the May federal election. Whilst this is disappointing, I think its shares are attractively priced at the current level. Especially given its positive long term outlook.
The Costa Group Holdings Ltd (ASX: CGC) share price has lost 52% of its value since the start of the year. The catalyst for this has been a series of guidance downgrades and a disappointing half year result from the horticulture company in August. Although Costa delivered an 11.8% increase in revenue, it posted a 15% decline in statutory net profit after tax to $41.1 million and warned that the continuation of challenging trading conditions means there is a risk that it could fall short of its calendar year guidance. Whilst its shares look better value now, I would suggest investors wait for a notable improvement in its performance before picking up shares.
Instead of Costa, I would be buying one of these growth shares which have been rated as buys and tipped for big things.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia has recommended Citadel Group 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.