How much have investors lost on the Freedom Foods (ASX:FNP) share price?

The Freedom Foods Group Ltd (ASX: FNP) share price has returned to trading. Here’s what the losses look like for ASX investors.
The post How much have investors lost on the Freedom Foods (ASX:FNP) share price? appeared first on The Motley Fool Australia. –

falling asx share price represented by business man wearing box on his head with a sad, crying face on it

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.

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.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post How much have investors lost on the Freedom Foods (ASX:FNP) share price? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!