But not all shares have recovered since last month. Here’s why these ASX 200 shares are still down in the dumps:
Brickworks Limited (ASX: BKW)
The Brickworks share price is down 18% since this time last month and 41% from its 52-week high. As well as being caught up in the market selloff, a disappointing half year update has put extra pressure onto its shares. Brickworks posted an underlying net profit after tax of $100 million for the six months ended January 31. This was a 37% decline over the prior corresponding period. It also warned of great uncertainty due to the pandemic and withdrew its previous outlook statements. While I think Brickworks is a quality company, I fear it may be some time until its performance improves.
InvoCare Limited (ASX: IVC)
The InvoCare share price has dropped 18% over the last 30 days and 40% from its 52-week high. Investors were selling the funeral company’s shares after the government introduced social distancing measures which limited the number of people at funerals. Also weighing on its shares was the announcement of a $250 million capital raising. InvoCare raised $200 million from institutional investors at a discount of $10.40 per new share and is now seeking to raise up to $50 million from retail shareholders. I think InvoCare is looking a lot more attractive after this decline, but I wouldn’t class its shares as cheap just yet. Nevertheless, patient investors are likely to do well with a medium to long term investment.
Webjet Limited (ASX: WEB)
The Webjet share price has lost 17.2% of its value since this time last month and is now down a whopping 86.9% from its 52-week high. The online travel agent has been one of the worst impacted companies from the coronavirus pandemic. With travel and tourism markets practically at a standstill, the company’s revenue has evaporated. However, the company has cut costs and raised significant funds to see it through the crisis. Though, this has come at a cost. Webjet’s shareholders have been extremely diluted by its equity raising. Unfortunately, I’m not convinced that its shares are good value yet and fear they could still drop lower. Though, a quicker than expected return to normal trading conditions could change that.
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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 Brickworks and Webjet Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended InvoCare Limited. 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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