The S&P/ASX 200 index may be closing in on an all-time high, but not all shares on the index are faring as well.
Three ASX 200 shares that have fallen heavily over the last 12 months are listed below. Here’s why they have sunk lower:
Costa Group Holdings Ltd (ASX: CGC)
The Costa Group share price is down 40% over the last 12 months. The catalyst for this massive decline has been the company’s failure to deliver on its guidance. Due largely to situations outside its control, Costa has been forced to downgrade its guidance countless times over the last 12 months. The most recent downgrade was for calendar year 2019. Instead of an adjusted net profit of $57 million to $66 million, it is now expecting less than half this at ~$28 million. Also weighing on its shares was a $187 million capital raising at a significant discount to its share price at the time.
G8 Education Ltd (ASX: GEM)
The G8 Education share price has lost 31% of its value since this time last year. The childcare centre operator’s shares have come under significant pressure since the release of a trading update at its investor day in November. G8 Education’s update revealed that a greater than forecast increase in supply has put pressure on its like for like occupancy growth. In light of this and its higher than planned wages, underlying EBIT is expected to be in the range of $131 million to $134 million. This compares to its previous guidance of $140 million to $145 million. Whilst this isn’t the biggest downgrade, investors appear concerned that trading conditions will remain tough for some time to come.
Mayne Pharma Group Ltd (ASX: MYX)
The Mayne Pharma share price has crashed 44% lower over the last 12 months. The pharmaceutical company’s shares have been sold off in recent months following its poor start to FY 2020. In November management warned that sustained pressure on generic drug pricing was weighing on its performance. As a result, its revenue had fallen 16% to $153 million during the first four months of the financial year.
I think it may be too soon to buy the above shares, but I certainly would be buying these quality (and dirt cheap) growth shares right now.
Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
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.