3 stocks that got clobbered by the market today
By Mike King - August 29, 2012
The S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) has closed flat, falling just 3 points to 4,356.4 as investors likely wait for US Federal Reserve chairman Ben Bernanke’s speech to international central bankers in Jackson Hole on Friday. Resources stocks were hammered today, as the iron ore price continues to trade under US$100 a tonne. Iron ore is currently trading at less than US$95 a tonne.
These three stocks fell by more than 8%.
Vision Eye Institute (ASX: VEI) saw its shares slump by 11.1% to end at 56 cents, despite the company reported a full year profit of $8.9 million on revenues of $111 million. Operating cash flow was very healthy at $26.6 million. Investors appear concerned that former health minister Michael Wooldridge, a director on the Vision board, faces a ban from corporate life over allegations that he breached his duties as a director, while chairman of Australian Property Custodian Holdings.
Sundance Resources (ASX: SDL) shares lost 9.7% to 32.5 cents, more than reversing yesterday’s 7.4% rise, despite accepting a revised 45 cents per share bid from China’s Hanlong Mining. Hanlong had previously offered 57 cents per share, but was told by Chinese authorities that it would only receive approval if it achieved a ‘reasonable’ acquisition price. With iron ore prices continuing to fall, investors likely fear the bid may be revised down again.
Ramelius Resources (ASX: RMS) shares slipped 8.3% to 44.5 cents, continuing yesterday’s falls after the company reported a 96% collapse in full year profit. Revenues have declined as the company’s Wattle Dam mine nears the end of its life, and gold has petered out. Luckily for the company it is ramping up production at its Mt Magnet operation, and has other prospective ventures. In the short-term, production is likely to be erratic, which could affect revenues and have a bearing on the share price.
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The S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) has closed flat, falling just 3 points to 4,356.4 as investors likely wait for US Federal Reserve chairman Ben Bernanke?s speech to international central bankers in Jackson Hole on Friday. Resources stocks were hammered today, as the iron ore price continues to trade under US$100 a tonne. Iron ore is currently trading at less than US$95 a tonne.
These three stocks fell by more than 8%.
Vision Eye Institute (ASX: VEI) saw its shares slump by 11.1% to end at 56 cents, despite the company reported a full year profit of $8.9 million on revenues…