1 Costa Group (CGC) $5.07
CGC has declined -30% over the last month making it one of our favourite stocks for 2019. The company through its subsidiaries grows and markets fruits and vegetables to supermarkets / independent grocers worldwide. Recently they substantially downgraded earnings due to some potentially transient seasonal factors.
Costa Group (ASX: CGC) Chart
2 Sims Metal (SGM) $9.19
Yesterday SGM was hammered 16% following a disappointing earnings update, the stock is now down almost 8% over the last month after an optimistic rally into yesterday’s announcement.
The scrap metal company’s shares are now trading at 1-year lows with the market listening to the CEO’s forecast of challenging conditions ahead.
Sims Metal (ASX: SGM) Chart
3 Speedcast International (SDA) $2.96
SDA has declined -7.2% over the last month and a painful 52% over the last 6-months, clearly one of the worst performers on the ASX200. The satellite communications company warned investors on Christmas Eve that 2019 was tracking slightly below expectations but the share price was clearly sounding some alarm bells beforehand.
The companies valuation is far more palatable than in 2018 trading on a P/E of 9.8x for 2019 while yielding 2.4% fully franked, however that implies that analysts are still fairly optimistic on the company’s outlook.
Speedcast International (ASX: SDA) Chart
4 Sydney Airports (SYD) $6.43
SYD has declined 7.1% during the last month and just over 10% over the last 6-months suffering most recently from a downgrade by CITI to sell, not a common occurrence for SYD. Last week we also saw a small decline in local traffic at the airport.
Chinese tourism numbers are still strong however recent surveys show Australia has slipped from 2nd to 4th as their preferred travel destination. Indian tourism is gaining momentum however the Chinese are still an incredibly important contributor to the broad spectrum of Australian tourism providers.
Without harping on this too much (as it’s been a common theme for us over the past year or so) SYD is also a stock that has become a figurehead for the local yield chasers – while global interest rates have pulled back in recent times, the overall trajectory is up which is a negative for ‘bond like’ equities.
Sydney Airports (ASX: SYD) Chart
5 Ardent Leisure (ALG) $1.45
ALG has declined 6.4% over the last month and 31% over the last 6-months but it was a strong performer yesterday rallying over 3%.
The shares / business have still to recover from the Dreamworld disaster which is no surprise but time can be a good healer. That said, the US business is where future growth resides and numbers there have also been soft.
Ardent Leisure (ASX: ALG) Chart