The S&P/ASX 200 index may have its record high in its sights, but not all shares on the index are faring as well.
The three shares listed below are the worst performers on the ASX 200 in 2019. Here's why they have been smashed this year:
Costa Group Holdings Ltd (ASX: CGC)
The Costa Group share price has been a very disappointing performer this year with a decline of 64.5%. Investors have been selling the horticulture company's shares after countless downgrades to its earnings guidance. The most recent downgrade was for its calendar year 2019 guidance. This has been revised to an adjusted net profit of just $28 million, compared to its previous guidance of $57 million to $66 million. Also weighing on its shares was its $187 million capital raising which was undertaken at a significant discount to its share price at the time.
Galaxy Resources Limited (ASX: GXY)
The Galaxy Resources share price has crashed a whopping 57% lower since the start of the year. The lithium miner's shares have come under heavy selling pressure this year due to another collapse in the price of the battery-making ingredient. This has been caused by softening demand and growing supply. Also weighing on its shares has been its plans to cut production significantly in 2020. It is aiming to cut its costs and make its operations profitable whilst it rides out the tough trading conditions. This appears to be a sign that management doesn't expect the lithium market to improve any time soon.
Speedcast International Ltd (ASX: SDA)
The Speedcast International share price is the worst performer on the ASX 200 this year with a massive 74% decline. The global satellite communications provider's shares were sold off following the release of its half year results earlier this year. In the first half of FY 2019 Speedcast posted a 17.3% increase in revenue to $357.6 million but a massive statutory loss after tax of $175.5 million. Management also revealed that its net debt has increased to $625 million. This is over three times more than its market capitalisation of ~$180 million. I suspect a material capital raising or a recapitalisation might be needed in the near future.
