With the market crashing lower on Thursday, it will come as no surprise to learn that a number of shares dropped to 52-week lows or worse.
Three shares that made this unwanted milestone are listed below. Here’s why they are down in the dumps right now:
The Galaxy Resources Limited (ASX: GXY) share price crashed to a multi year low of 98 cents yesterday. The lithium miner’s shares have come under significant pressure this year due to a collapse in the price of the battery making ingredient. This has been caused by softer than expected demand and the increasing supply of the white metal. Unfortunately, with lithium giant SQM intending to increase supply materially to win back market share, things look like they could get worse before they get better for Galaxy and its lithium peers.
The Inghams Group Ltd (ASX: ING) share price continued its poor run and dropped to a 52-week low of $3.00 on Thursday. Investors have been selling the poultry producer’s shares since the release of its full year results. The driver of this was its guidance for the year ahead, which saw management warn that its EBITDA would fall in FY 2020. This is due to higher input costs and increased costs relating to the Further Processing project.
The Webjet Limited (ASX: WEB) share price fell to a 52-week low of $10.03 on Thursday. This online travel agent’s shares have fallen heavily over the last couple of weeks due to the collapse of its UK partner Thomas Cook. This triggered a number of broker downgrades and sent many shareholders to the exits. Whilst this has been a very disappointing turn of events, I think the selloff has been overdone and has left its shares trading at a very attractive level for long term investors.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has recommended Webjet 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.
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