Although the local market has stormed to a 52-week high today, not all shares have been able to climb higher.
In fact, a few unlucky shares have fallen to 52-week lows. Here's what you need to know:
The Godfreys Group Ltd (ASX: GFY) share price touched on a new multi-year low of 38.5 cents. Investors have been heading to the exits in their droves since the struggling and heavily indebted cleaning products retailer downgraded its profit guidance at the start of the month. Unfortunately I wouldn't expect to see its share price rebound higher any time soon. I struggle to see how the Godfreys brand will remain relevant for consumers in the current retail environment and believe its balance sheet could cause it significant problems in the future.
The Retail Food Group Limited (ASX: RFG) share price plunged to a multi-year low of $1.96 following its shock profit downgrade. Whilst negative media reports have weighed heavily on its shares in recent days, this profit downgrade appears to have been the final straw for a lot of shareholders. As cheap as its shares do look, I think it will be an uphill struggle for the company to return to its former glory. After all, there is a real danger that it could have trouble selling its franchises with all this negative news flow.
The Syntonic Ltd (ASX: SYT) share price plunged to a 52-week low of 1.9 cents on Tuesday after announcing the issue of approximately 250 million new shares following its $5 million placement. Not only was the placement highly dilutive to existing shareholders, but as these shares were issued at 2 cents each, many shareholders appear to have been quick to offload them this morning. I suspect this selling pressure could continue for some time to come, holdings its share price down for the medium term.
