Although shares such as a2 Milk Company Ltd (Australia) (ASX: A2M) and Qantas Airways Limited (ASX: QAN) have gone absolutely gangbusters this year, the same can't be said for a number of shares on the local share market.
Two shares which have fallen significantly are listed below. Are they too cheap to ignore?
The Catapult Group International Ltd (ASX: CAT) share price has plunged 42% in 2017 after its FY 2017 results disappointed the market. Despite delivering an impressive 249% increase in revenue to $60.8 million, the sports analytics company posted a $13.6 million loss compared to a $5.9 million loss in FY 2016.
A recent research note out of Bell Potter revealed that its analysts are sceptical that the company will turn a profit in FY 2018, which could mean yet another year of disappointment for shareholders and put pressure on its dwindling cash balance. While I think it potentially could have a lot of promise, I plan to watch on from the sidelines until there is a notable improvement in its bottom line.
The Monash IVF Group Ltd (ASX: MVF) share price has fallen 26% since the turn of the year. The arrival of a low-cost competitor in the IVF space and the loss of one of its key doctors have weighed heavily on the fertility treatment company's shares this year. Whilst I do think that Monash IVF looks cheap now, I am concerned that its earnings could fall significantly in FY 2019.
The company has warned that Dr Lynn Burmeister's exit could result in a high single-digit percentage decline in net profit after tax in FY 2019 when her non-compete period expires. Considering the pressures the company is facing from low-cost competition, its shares could be cheap for a reason. I would suggest investors hold off an investment until there are signs of improvement.
