The Australian share market may be trading close to an all-time high, but not all shares are performing as strongly.
Here's why these ASX shares have fallen heavily over the last 12 months:
Speedcast International Ltd (ASX: SDA)
The Speedcast share price is down a sizeable 68% since this time last year. Investors have been selling the global satellite communications provider's shares following its very disappointing performance in FY 2019. In the first half of the year the company posted a 17.3% increase in revenue to $357.6 million, but a massive statutory loss after tax of $175.5 million. Management also advised that its net debt had increased to $625 million. This is greater than its market capitalisation and has sparked fears that a material capital raising might be needed in the near term to strengthen its balance sheet.
Superloop Ltd (ASX: SLC)
The Superloop share price is down 37.6% over the last 12 months. As with Speedcast, the catalyst for this decline was its disappointing performance in FY 2019. The fibre optic internet infrastructure company made a material downgrade to its guidance last year after delays in signing a major commercial agreement. In addition to this, a $90 million capital raising has also weighed on its share price. And while management appears positive on its prospects in the future, investors have so far been hesitant to take advantage of the pullback in its share price. They may be waiting for a notable improvement in its performance before investing.
Syrah Resources Ltd (ASX: SYR)
The Syrah Resources share price has crashed 66% lower over the last 12 months. Investors have been selling the graphite producer's shares due to a sustained and significant decline in battery material prices. Prices fell so hard last year that it was costing notably more for Syrah to produce its graphite than it was receiving for it from buyers. This led to the company slashing its production materially in the near term to conserve capital and cut supply.
