Earlier today I looked at a few shares that have more than doubled in value in 2020.
Unfortunately, not all shares have fared as well as these and some are nursing heavy declines this year.
Three beaten down ASX shares are listed below. Here's why they are down in the dumps:
Image Source: Getty Images
A2 Milk Company Ltd (ASX: A2M)
The a2 Milk share price has lost 24.7% of its value since the start of the year. Though, that really only tells you half of the story. The a2 Milk share price was a very strong performer for much of the year and was trading at an all-time high of $20.05 in July. Since then, it has fallen almost 50% to $10.77. This has been driven by weakness in the daigou channel, which is weighing heavily on its infant formula sales in FY 2021. So much so, the former market darling is expecting to post a notable reduction in both sales and earnings this year.
Bravura Solutions Ltd (ASX: BVS)
The Bravura share price has fallen 38.7% in 2020. Investors have been selling the shares of the provider of financial software products and services after COVID and Brexit headwinds impacted its performance negatively. While management is forecasting flat earnings in FY 2021, the market appears concerned by the significant weighting to the second half. Bravura's chief executive officer, Tony Klim, explained: "…second wave UK lockdowns and stalling Brexit negotiations have increased uncertainty and are slowing the progress of pipeline opportunities in the UK. As a result, Bravura expects FY21 NPAT to be weighted approximately 80% to the second half of FY21."
Treasury Wine Estates Ltd (ASX: TWE)
The Treasury Wine share price has sunk 43.6% since the start of 2020. The wine company's shares have been sold off this year after it became a victim of the Australia-China trade war. Treasury Wine revealed that the Chinese tariffs on its wine exports are expected to hit its sales in the country hard. Given that China contributed 30% of its earnings in FY 2020, management is acting fast to limit the damage. This includes the reallocation of its Penfolds Bin and Icon range from China to other key luxury growth market. Though, it has warned that it could take upwards of three years for this plan to reach its full potential.
