AUSTRALIA – The Australian stock market had a busy year, with issues like Brexit and the US-China trade deal hammering at shares. Despite that, the ASX had a pretty good year as these three stocks will show you. Conversely, there are also several that disappointed.
Two companies that failed to live up to their potential was Reliance Worldwide Corporation Ltd and Speedcast International Ltd.
Reliance is known around the world for its push to connect (PTC) plumbing fixtures and control valves. The company was expected to boom this year as it expanded its shares to the United States. It was easy to see why many pinned their hopes on Reliance. It closed 2018 on a high
However, the company struggled this year and even dropped more than 28% at one point. It was even shockingly downgraded in May, with several analysts noting that the move was due to the trade issues between the US and China.
Reliance also suffered from the ongoing debacle with Brexit as it was forced to increase the raw materials it imported from the region. The price of stainless steel, copper, and zinc also chipped away at the company’s prices and revenue.
It’s a different story with Speedcast. The IT and communications company operate in over 140 countries and cuts across various sectors – energy, enterprise, maritime, and emerging markets. It was heralded as an unnoticed growth stock in 2018 and made solid acquisitions and contracts.
But just like Reliance, Speedcast also floundered this year. The company started at $2.90 at the start of the year and is currently at $0.91. That’s a drop of over 68%. The decline was due to the company downgrading both its half-year and full-year revenue due to poor market conditions, profit delays, and low earnings from Globecomm.
It’s not all gloom and doom for the ASX though. A lot of listed companies had stellar years. Three of the most profitable are Metals Tech, Simavita, and Actinogen Medical.
Metals Tech encountered some problems initially with its lithium project but won big when it purchased a massive gold project in Slovakia. And with gold prices surging, the company enjoyed a 500% boost.
Traders who took a risk on Simavita’s diaper technology had a profitable run this year. Thanks to an CE Mark certification, the company has since a 480% increase.
Actinogen Medical also looked to be a risky investment when its anti-Alzheimer’s drug trial failed. This led to the company’s shares crashing by 70%. Its perseverance with the drug trials paid off though, and the company has recovered almost everything it has lost and then some. It gained 467% by October.