As we put the first three quarters of 2019 behind us, we could very well say that this year has been nothing short of a roller coaster ride; with companies going bust, a raging trade war weighing on tech stocks, a massive crypto slide, threats of a U.S. Iran war and an ongoing Brexit debacle that has kept the E.U. on its toes. 2019 has been a fateful year for some companies, either sending them to all-time highs or even causing sudden bankruptcies and delistings.
2019’s Biggest Winners So Far:
No.1: Avon Products +206% YTD
AVP has been gaining momentum on the back of its ‘Open Up Avon’ strategy. This strategy focuses on reviving the company’s direct selling business model, renovating the brand, enhancing e-commerce and other capabilities to aid a performance-driven transformation. Avon’s Natura deal, its restructuring, cost cuts and endorsement from major hedge fund managers have helped AVP skyrocket by more than 200% this year.
No.2: Lithia Motors +71% YTD
Lithia Motors (LAD) has grown into one of the top automotive dealership groups in the United States. Through acquisitions, it has led the way to become a dominant player in its industry and continues to expand further.
No.3: Ferrovial +54% YTD
After cutting losses and reporting a turnover of €2bn, 82% of which was obtained outside Spain, Ferrovial added more than 50% year to date.
2019’s Biggest Losers So Far:
No.1: Thomas Cook -89% YTD [Liquidated]
Thomas Cook’s sudden bankruptcy on Sunday, Sept 22 was a shock to the FTSE 100. The 178-year-old British tour operator collapsed overnight, stranding hundreds of thousands of travellers with the company stating that it would take steps to enter into compulsory liquidation with immediate effect. Shares of Thomas Cook Group (TCG) plummeted as much as 89% year to date.
No.2: Debenhams -64% YTD [Delisted]
To say it’s been a challenging year for Debenhams (DEB) would be an understatement. After a steady downward trend in the share price over the last two years, in which the stock declined from over 50p to less than 2p (a 97% loss), Debenhams went into administration early April, and its shares were removed from the London Stock Exchange.
No.3: Tesla -28% YTD
Tesla (TSLA) is the sole survivor of the 2019 YTD bear trend, with its shares plummeting after a series of under deliveries, disappointing sales figures, a steep Q2 loss and bleak forecasts for Q3. Tesla’s fatal car crash and the Model 3′s slow rate of production are also among the main reasons behind Tesla’s dropping performance and stock price. Whatever the case, 2019 has definitely not been kind to the electric carmaker.
The Bottom Line:
Looking ahead, investors have plenty of concerns, including the trade conflict between the U.S. and China which continues to weigh on equities, the Brexit saga which can push UK bourses lower and the threat of a possible global recession. We would, therefore, expect to see high volatility and some interesting opportunities for the end of 2019.
You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.
Sources:
Investing, Finance Times, Ferrovial NewsRoom & Seeking Alpha as of Sept 23 2019, 9:00 GMT
