Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to carve out a strong gain this year, a couple of popular shares on the index have had a horror showing.
Does this make them bargain buys or best avoided?
The Myer Holdings Ltd (ASX: MYR) share price has lost 53% of its value this year after its turnaround plan failed to deliver on expectations. While it is still early on in its five-year plan, I'm not overly optimistic that the plan will succeed.
In my opinion Myer lacks the relevance it needs with shoppers and its share price is more likely to go to $0.00 than $1.00. Especially after its recent trading update revealed a 5% decline in sales during December compared to the prior corresponding period. In light of this, I would suggest investors stay clear of Myer.
The Retail Food Group Limited (ASX: RFG) share price has tumbled over 59% this year and currently sits at a five-year low of $2.85. While the company's performance and its full-year guidance has been adequate, negative media coverage of Retail Food Group has weighed heavily on its shares and has investors concerned about its future prospects.
There is a danger that this negative coverage could lead to the company struggling to find new buyers of its franchises, putting its future growth at risk. However, with its shares changing hands at under 7x trailing earnings and providing a trailing fully franked 10% dividend, it certainly is a tempting investment option for the brave. I'm not brave enough just yet.
