The Australian share market may be trading close to a record high but the same cannot be said for all ASX shares.
For example, much to the dismay of their shareholders, the three ASX shares listed below have just hit 52-week lows. Here's what is happening:
Air New Zealand Limited (ASX: AIZ)
The Air New Zealand share price hit a 52-week low of 55 cents before rebounding. This latest decline means that the airline operator's shares are now down 21% over the last 12 months.
Last month, Air New Zealand released its half-year results and reported a 13% increase in operating revenue to NZ$3,474 million but a disappointing 39% decline in net profit after tax to NZ$129 million. However, it is worth noting that in the prior corresponding period the company recorded one of its highest-ever results thanks to the rapid return of air travel as New Zealand's borders reopened.
Clover Corporation Ltd (ASX: CLV)
The Clover share price tumbled to a 52-week low of 52 cents today. The ingredients company's shares have now lost 55% of their value over the last 12 months.
Earlier this week, Clover released its half year results and reported a 39% decline in sales to $27.3 million and a loss after tax of $0.6 million. This poor result was caused by ongoing challenges in its infant formula segment. The company advised:
A combination of factors, including declining global birth rates, a shift in Chinese manufacturing preferences towards Algae DHA over fish DHA, and intensified competition in a shrinking market, has led to continued sluggish demand for infant formula products.
Lake Resources N.L. (ASX: LKE)
The Lake Resources share price dropped to a 52-week low of 6.6 cents today. This decline means that the lithium developer's shares are now down a whopping 87% since this time last year.
Investors have been rushing to the exits since the release of the scoping study for the Kachi lithium project last year. That study relies heavily on lithium price assumptions that are materially higher than current levels.
Whereas if you use realistic lithium price assumptions, the project looks unlikely to offer a return that is sufficient (if any) to justify its construction. Particularly given that its initial capital expenditure for phase one is estimated to be US$1.38 billion. This compares to the ASX lithium share's market capitalisation of $105 million.
