The 4 worst performing ASX 200 stocks to hold in November unmasked

Investors would have done well to avoid these four ASX 200 stocks in November.

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Key points

  •  Iperionx, TPG Telecom, Temple & Webster, and DroneShield all experienced steep share price drops in November.
  • Iperionx faced pressure from a short seller report, TPG Telecom declined post-ex-dividend and capital raise, while Temple & Webster fell short of market expectations despite revenue growth.
  • DroneShield suffered the steepest decline of 48.3%, largely due to a significant sell-off of shares by its CEO.

The S&P/ASX 200 Index (ASX: XJO) slipped 3% in November, with these four ASX 200 shares all suffering much steeper falls.

So, which four companies were the worst ones to buy on 31 October and hold through to market close on 28 November?

Read on!

Three ASX companies in sharp reverse last month

The first ASX 200 stock investors would have done well to avoid in November is Iperionx Ltd (ASX: IPX).

Shares in the titanium products producer closed out October trading for $6.80 and ended November changing hands for $5.11 apiece. That saw the Iperionx share price down 24.9% over the month just past.

Longer term, shares remain up 13% over 12 months.

Iperionx shares came under pressure in November amid a short seller report released by Spruce Point Management.

"Based on our analysis, we believe investors should exercise caution because the shares may be significantly overvalued," the short seller noted.

Moving on to the second ASX 200 stock taking a sharp fall in November, we have TPG Telecom Ltd (ASX: TPG).

Shares in Australia's third-largest telecommunications company ended October trading for $5.53 and ended November at $3.75. This put the TPG Telecom share price down 32.2% over the month, and it sees shares down 17% in a year.

Some of that selling pressure came after the company raised $300 million through an Institutional Reinvestment Plan, issuing new shares at a 5% discount to the previous trading day's closing price.

But the biggest loss came on 14 November, when TPG Telecom shares closed down 31.1%.

However, those losses weren't as harsh as they might seem. That's because the company had just traded ex-dividend (including an outsized shareholder capital return), which saw stockholders achieving a 28.8% yield relative to the previous trading day's closing price.

Which brings us to the third fast-falling ASX 200 stock in November, Temple & Webster Group Ltd (ASX: TPW).

Shares in the online furniture and homewares retailer closed on 31 October trading for $23.81. At the end of trade on 28 November, shares were changing hands for $15.52 apiece, down 34.8% for the month.

Temple & Webster shares remain up 24% over 12 months.

Almost all of November's losses can be pinned to 26 November, when shares closed the day down a precipitous 32.3%. This followed on a trading update in which the company reported that revenue from 1 July to 20 November was up 18% year on year. But that growth fell short of market expectations, and investors were quick to hit their sell buttons.

The worst-performing ASX 200 stock to hold in November

And the ignominious title of worst performing ASX 200 stock to hold in November goes to DroneShield Ltd (ASX: DRO).

Shares in the drone defence company closed on 31 October trading for $3.83 and ended November at $1.98 apiece.

This saw the DroneShield share price down a steep 48.3% over the month. Though shares remain up 163% over 12 months.

DroneShield shares faced a series of headwinds in November after notching new record highs in October.

The biggest single-day sell-off came on 13 November.

Investors sent the DroneShield share price tumbling 31.4% on the day after learning that CEO Oleg Vornik had sold $49.47 million worth of the company's shares the prior week.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. 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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