Welcome back to the 52-week Low Series where we look for trends and value among some of the market’s most discarded and disliked companies.
Market Index’s 52-week lows scan shows users which companies are making 52-week lows on the given day. This time, we’re grouping stocks from the same sector.
Note: This list only refers to companies making 52-week lows in the past two weeks, with a market cap of more than $500 million and omits those that are thinly traded. Share price performance as at Friday, 26 May 2023.
Ticker | Company | Close Price | Market Cap | 52w Low |
---|---|---|---|---|
SYR | Syrah Resources | $0.86 | $606m | $0.835 |
VUL | Vulcan Energy | $3.84 | $651m | $3.75 |
5EA | 5E Advanced Materials | $0.435 | $204m | $0.415 |
It's a bit of a case-by-case basis for the three stocks above. The only thing they have in common is that they've all been on a relatively downward spiral for the past 3-4 months.
Syrah Resources: It’s trading at levels not seen since December 2020 and down almost 70% from November 2022 highs. Syrah was aggressively sold off after its March quarter results on 27 April, namely due to a) higher-than-expected production costs and b) plans to lower graphite production to “match periods of volatile customer demand and lower sales ordering.”
Vulcan Energy: The emerging lithium brine producer has drawn a lot of criticism from its Definitive Feasibility Study – released onin 13 February – which raised its NPV by more than 250% (most by raising lithium price assumptions) but requires almost 1.5bn euros (~A$2.4bn) in capex. Vulcan says it’s targeting a debt to equity ratio of 65:35. Under this rationale, that’s still more than $800m in equity vs. its current market cap of $630m.
5E Materials: 5EA is an emerging lithium and boron producer based in Southern California. The stock has been in a downward spiral since June 2022. In March, the company appointed Susan Seilheimer Brennan as CEO – Brennan was formerly the CEO of NYSE-listed Romeo Power. During her time as Romeo CEO, the stock fell from $6.80 to 35 cents. Hmmm.
Ticker | Company | Close Price | Market Cap | 52w Low |
---|---|---|---|---|
TER | Terracom | $0.51 | $508m | $0.505 |
CRN | Coronado Global Resources | $1.325 | $2.3bn | $1.305 |
Macquarie says that the energy markets have underestimated consumers’ response to high energy prices, with demand destruction exceeding expectations. Newcastle coal futures maintained its downward trend last week, tumbling 12% on Friday to US$140 a tonne.
“Demand destruction was partly due to a warm Northern Hemisphere winter, but the data also points to efficiencies and demand savings by both industrial and residential consumers. Some of these may be reversed as prices moderate,” the analysts said.
Ticker | Company | Close Price | Market Cap | 52w Low |
---|---|---|---|---|
ELD | Elders | $6.56 | $1.0bn | $6.37 |
IPL | Incitec Pivot | $3.03 | $5.8bn | $2.86 |
AAC | Australian Agricultural Company | $1.57 | $934m | $1.4 |
The commentary from Elders and Incitec has been relatively consistent with the general decline in soft commodity prices and adverse weather conditions.
Elders half-year FY23 results (15 May): “Elders reported a resilient HY23 performance against a volatile agricultural industry backdrop, impacted by softened livestock trading conditions, weaker crop input prices and unseasonably wet weather.”
Incitec half-year FY23 results (17 May): Experienced an overall $70m negative contribution from “from lower commodity prices with the impact of declining fertiliser prices partially offset by the higher realised ammonia price.”
Ticker | Company | Close Price | Market Cap | 52w Low |
---|---|---|---|---|
CMW | Cromwell Property Group | $0.54 | $1.4bn | 0.54 |
EVT | EVT Limited | $11.46 | $1.8bn | $11.12 |
CQE | Charter Hall Social Infrastructure | $2.89 | $1.0bn | $2.865 |
AFI | Australian Foundation Investment Company | $7.08 | $10.6bn | $7.04 |
CIN | Carlton Investments | $27.7 | $810m | $27.5 |
CBO | Cobram Estate Olives | $1.24 | $515m | $1.2 |
Ticker | Company Name | Close Price | Market Cap | 52w Low |
---|---|---|---|---|
IMU | Imugene | $0.11 | $738m | $0.105 |
WAF | West African Resources | $0.845 | $921m | $0.83 |
MTS | Metcash | $3.56 | $3.5bn | $3.56 |
RFF | Rural Funds Group | $1.795 | $702m | $1.795 |
FGX | Future Generation Australia | $1.075 | $542m | $1.065 |
HVN | Harvey Norman | $3.49 | $4.3bn | $3.425 |
APM | APM Human Services International | $2.04 | $1.7bn | $1.78 |
GRR | Grange Resources | $0.535 | $607.6m | $0.515 |
SGR | The Star Entertainment | $1.175 | $1.9bn | $1.143 |
ERA | Energy Resources of Australia | $0.031 | $664m | $0.028 |
BLY | Boart Longyear | $1.92 | $565m | $1.65 |
BOQ | Bank of Queensland | $5.67 | $3.7bn | $5.56 |
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