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Why Costa Group and these ASX shares have crashed more that 50% lower in 2019

On Tuesday I looked at three shares that have more than doubled in value since the start of the year.

Today I thought I would look at the other side of the coin – at the shares that have halved in value in 2019.

Three shares that have done this are listed below. Here’s why they have been crushed this year:

The Amaysim Australia Ltd (ASX: AYS) share price has fallen by a disappointing 56% since the start of the year. Investors have been heading to the exits in their droves since the release of a disappointing full year result in August. The junior telco company reported a 7.8% decline in revenue to $508.3 million and a $6.5 million loss. One major concern, though, was that a key driver of this underperformance was a 4.8% decline in recurring mobile subscribers to 624,000. Investors appear concerned that Amaysim’s subscriber numbers may have peaked after several years of growth.

The Costa Group Holdings Ltd (ASX: CGC) share price has lost 51% of its value since the start of the year. The horticulture company’s shares have come under pressure this year due to a series of earnings guidance downgrades and a disappointing half year result in August. Costa posted a 15% decline in half year statutory net profit after tax to $41.1 million and warned that the continuation of challenging trading conditions means it could fall short of its calendar year guidance. 

The Speedcast International Ltd (ASX: SDA) share price has been the worst performer on the ASX 200 index this year with a decline of 59%. The global satellite communications provider’s shares crashed lower last month when it released a very disappointing half year update. In the first half of FY 2019 Speedcast posted a 17.3% increase in revenue to $357.6 million, but a massive statutory loss after tax of $175.5 million. It also revealed that its net debt increased to a sizeable $625 million, sparking fears that a material capital raising might be needed to strengthen its balance sheet.

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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. 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.

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