After a few days of wobbles, the All Ordinaries (Index: ^AXAO) (ASX: XAO) has dropped around 0.3% week to date.
Whilst this is a touch disappointing, spare a thought for the shareholders of the three shares listed below which have been smashed this week. Are they in the buy zone now?
The Eclipx Group Ltd (ASX: ECX) share price has fallen a massive 61% this week. The fleet management company's shares have come under significant pressure following the release of a disappointing trading update which revealed that trading conditions have continued to deteriorate. Conditions are so weak that management warned that Eclipx's NPATA is now down 42.4% compared with the first 5 months of FY 2018. In addition to this, the company advised that merger talks with industry peer McMillan Shakespeare Limited (ASX: MMS) have broken down and a deal is unlikely to be reached. Whilst its shares look cheap, I would stay clear of Eclipx until its performance improves.
The Nufarm Limited (ASX: NUF) share price has tumbled 16% lower this week. The crop protection and specialist seed company's shares sank lower after the release of a disappointing half year result. Due partly to dry conditions in the Australia market, Nufarm fell short of the market's expectations. Adding to the selling pressure was its decision to suspend its dividend and downgrade its full year EBITDA guidance. Although I'm not a big fan of Nufarm, I think its shares are arguably in the buy zone now. Especially given its omega-3 opportunity.
The Wagners Holding Company Ltd (ASX: WGN) share price has crashed 30% lower this week after the building materials company announced the suspension of its cement supply agreement with major customer Boral Limited (ASX: BLD). Wagners has suspended the agreement whilst it disputes a pricing notice filed by Boral for cement supply from a competitor at a significantly lower price that its current agreement. I would suggest investors stay clear of Wagners because this appears to be a sign that competition is pushing cement prices lower, which could put a lot of pressure on the company's margins and profits.
