Today on the ASX, something has happened which doesn't happen too often.
A company has returned to trading after a near-9 month absence. Yes, Freedom Foods Group Ltd (ASX: FNP) shares have returned to trading this morning, and boy was it not pretty.
At the time of writing, the Freedom Foods share price is down a staggering 81.06% to 57 cents a share after opening at just 20 cents this morning. Freedom last closed at $3.01 a share – but that was back on 24 June 2020.
For some context, back then Victoria was just about to start its extended lockdown and Donald Trump still had 7 months to go as president.
Image source: Getty Images
The sorry tale of the Freedom Foods share price
Here at the Fool, we have extensively covered this saga, but here's a refresh in a nutshell. Investors were first alerted that something wasn't quite right at the company when it announced a series of writedowns on its books. These included spoiled food stores, among other things.
Then, The company's CEO and CFO both suddenly resigned, and the share price was suspended shortly afterwards. The company had been bobbing along in uncharted waters since a debate raged over who was ultimately responsible for this series of debacles. But it has returned to trading today after announcing a $265 million recapitalisation arrangement at the end of last week.
So, let's have a look at how much investors might have lost on this sorry story. So anyone who was hoping for a 'turnaround play' and invested in Freedom on its last close, is currently down 81% on their money. That means a $1,000 investment on 24 June would be worth $190 today.
What about Freedom's 52-week high of $5 a share the company saw back in March last year (not too often a company can say that)? Anyone who 'bought the dip' back then would be down a catastrophic 87.6%.
And finally, anyone who bought in back at Freedom's all-time high of $6.94 that was reached in September 2018 is down a heartbreaking 91.79% today. That would have turned a $1,000 investment into $82.
But it's not all bad for everyone involved in Freedom Foods share price today. Freedom shares opened at 20 cents apiece this morning. At the time of writing, they are up to 57 cents a share. That's a 185% recovery in an hour or two of trading. Clearly, some investors are getting their bargain-hunting hats on this morning.
