Australia Markets closed

Why these All Ords shares have been crushed over the last 12 months

James Mickleboro

The Australian share market may be trading close to an all-time high, but not all shares are performing as strongly.

Here’s why these ASX shares have fallen heavily over the last 12 months:

Speedcast International Ltd (ASX: SDA) 

The Speedcast share price is down a sizeable 68% since this time last year. Investors have been selling the global satellite communications provider’s shares following its very disappointing performance in FY 2019. In the first half of the year the company posted a 17.3% increase in revenue to $357.6 million, but a massive statutory loss after tax of $175.5 million. Management also advised that its net debt had increased to $625 million. This is greater than its market capitalisation and has sparked fears that a material capital raising might be needed in the near term to strengthen its balance sheet.

Superloop Ltd (ASX: SLC) 

The Superloop share price is down 37.6% over the last 12 months. As with Speedcast, the catalyst for this decline was its disappointing performance in FY 2019. The fibre optic internet infrastructure company made a material downgrade to its guidance last year after delays in signing a major commercial agreement. In addition to this, a $90 million capital raising has also weighed on its share price. And while management appears positive on its prospects in the future, investors have so far been hesitant to take advantage of the pullback in its share price. They may be waiting for a notable improvement in its performance before investing.

Syrah Resources Ltd (ASX: SYR) 

The Syrah Resources share price has crashed 66% lower over the last 12 months. Investors have been selling the graphite producer’s shares due to a sustained and significant decline in battery material prices. Prices fell so hard last year that it was costing notably more for Syrah to produce its graphite than it was receiving for it from buyers. This led to the company slashing its production materially in the near term to conserve capital and cut supply.

The post Why these All Ords shares have been crushed over the last 12 months appeared first on Motley Fool Australia.

Whilst the shares above look cheap, I think it may be too soon to invest. Whereas these dirt cheap shares are certainly in the buy zone.

NEW. Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our Motley Fool experts have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


More reading

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020