The S&P/ASX 200 Index (ASX: XJO) has tumbled notably lower in 2020 because of the coronavirus pandemic.
Whilst the ASX 200's decline is disappointing, spare a thought for the shareholders of the three shares listed below.
These three shares have fallen at least 50% in 2020. Are they too cheap to ignore?
The Nearmap Ltd (ASX: NEA) share price is down 50.6% since the start of the year. This decline has been driven by a combination of the pandemic and churn/downgrade events from a couple of major customers. The latter led to the aerial imagery technology and location data company downgrading its guidance for FY 2020. I think this could be a buying opportunity for patient investors, especially given how lockdowns and remote working appear to be supporting demand for its services. Though, I suspect that a capital raising may be required in the next 12 months to support its operations. So it is worth considering the implications of that before investing.
The Oil Search Limited (ASX: OSH) share price has crashed 61.8% lower this year. The catalyst for this massive decline has been a collapse in oil prices due to an oversupply and falling demand because of the pandemic. The good news for Oil Search is that OPEC and its allies have just agreed to cut production materially. This could potentially mean that prices are close to bottoming, which could soon make Oil Search a good option for investors.
The Webjet Limited (ASX: WEB) share price has lost 68.9% of its value in 2020. The online travel agent's shares have been sold off after the pandemic hit travel and tourism markets. Things were so bleak for Webjet that it has recently been forced to raise capital at a price of just 10% of its 52-week high to see it through the crisis. Positively, Webjet does now have sufficient funds to last it until at least the end of the year. So, if the crisis passes before then, it should be in a solid position. However, nobody knows how long this will drag on for. So, I wouldn't be in a rush to invest just yet.
