The Dusk Group Ltd (ASX: DSK) share price continues its slide below $2 and is currently trading at $1.94, down 0.26% for the day so far.
The Dusk share price has been in the doldrums this year. For a three-month period between February and the end of April, it was rangebound between about $2.45 and $2.80. Then over May, the shares lost 21.96%. Boom, just like that. Like a candle in the wind.
Dusk’s flame-out in 2022
This year has been pretty unexciting in terms of ASX announcements from Dusk.
In February, the company released its FY22 half-year results which showed a 12% decline in sales revenue largely due to lockdowns and mandated store closures on the East Coast.
Lockdowns proved a major problem for Dusk, leading to a collective 5,483 lost trading days in NSW, Victoria, and the ACT.
On a positive note, online sales increased by 2.8% over the prior corresponding period to $7.7 million. This accounted for 9.7% of total sales.
Then in March, Dusk disappointed investors by terminating its proposed acquisition of Eroma. There was no explanation other than the deal not meeting “certain conditions”.
The $28 million purchase of Australia’s leading supplier of candle making inputs and fragrance oils was announced in December 2021.
These are the only two price-sensitive announcements we have seen from Dusk in 2022 so far.
Dusk share price history
Dusk is a young ASX share. It began trading in November 2020. Its initial public offering (IPO) price was $2 and it closed on day one at $1.69.
Dusk had a quick ascension on the ASX, with a series of positive results pushing the share price to an all-time high of $4.07 in July 2021. It began drifting down in August and the decline has continued in 2022.
Since the beginning of the year, the Dusk share price has lost almost 40% in value.
Last month my Fool colleague Tristan posed the question: Is Dusk now “too cheap to ignore“?
Is Dusk worth buying for the dividends?
Dusk is a very good dividend payer. On 19 April, we reported that Commsec was tipping a grossed-up dividend yield of 10.25% in FY22 and further growth in dividends in FY23 and FY24.
The article said Commsec numbers “suggest the Dusk share price is valued at less than 10x FY22’s estimated earnings”.