The All Ordinaries index may have charged higher this year, but not all shares have been able to follow its lead.
Three shares that have thoroughly underperformed the index in 2019 are listed below. Here’s why they have been crushed:
The Amaysim Australia Ltd (ASX: AYS) share price has been a very disappointing performer this year with a decline of 58%. Its shares have come under significant pressure since the release of its full year results in August. In FY 2019 the telco company reported a 7.8% decline in revenue to $508.3 million and a $6.5 million loss. Whilst this was disappointing, one thing that stood out was a 4.8% drop in recurring mobile subscribers to 624,000. This could be a sign that Amaysim’s subscriber numbers have peaked after several years of growth.
The Speedcast International Ltd (ASX: SDA) share price is down a sizeable 62% since the start of the year. Whilst investors have been selling the global satellite communications provider’s shares all year, a good portion of this decline came last month following the release of its half year results. In the first half of FY 2019 Speedcast posted a 17.3% increase in revenue to $357.6 million, but a whopping statutory loss after tax of $175.5 million. Management also revealed that its net debt has increased to $625 million, which I suspect could mean a material capital raising might be needed in the near term to strengthen its balance sheet.
The Syrah Resources Ltd (ASX: SYR) share price has crashed 66% lower this year. Investors have been selling this graphite producer’s shares after significant weakness in battery material prices. Prices have fallen so hard that it now costs notably more for Syrah to produce its graphite than it receives from buyers. As a result, the company intends to slash its production materially in the near term to conserve capital and cut supply. Another update will be provided next month in relation to its production plans over the medium term.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.