Although the market is trading within sight of its 52-week high, not all shares have been performing as strongly.
Three shares that have just hit 52-week lows or worse are listed below. Here's why they are down in the dumps:
The Cann Group Ltd (ASX: CAN) share price dropped to a two-year low of $1.52 on Tuesday, stretching the cannabis company's 12-month decline to almost 44%. Investors appear to have been selling cannabis shares this year after the industry lost its shine with them. For Cann, I suspect that there may be concerns over the oversupply of dry flower and the impact that this will have on its business model in the future.
The Citadel Group Ltd (ASX: CGL) share price fell to a multi-year low of $3.54 yesterday. The information management specialist's shares have come under significant pressure this year amid concerns over its very disappointing performance in FY 2019. For the 12 months ended June 30, Citadel posted a 7% decline in total revenue to $99.2 million and a 44% drop in net profit to $10.9 million. Management blamed the poor performance on delays in project extensions and lower customer spends due to the federal election. Judging by the share price decline, some investors don't appear confident that its performance has picked up since the end of June.
The Pilbara Minerals Ltd (ASX: PLS) share price dropped to a multi-year low of 31 cents on Tuesday. Investors have been selling the lithium miner's shares this year due to concerns over falling prices of the battery making ingredient. Lithium prices have come under significant pressure again this year due to rising supply and weakening demand in China. This latest decline means that Pilbara Minerals' shares are down almost 60% since the start of the year. I'm not confident that this will be a quick fix and expect that some of the smaller players could be forced out of business if prices remain at these low levels for much longer.
