The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has dropped 0.6%, in a steady fall over the trading day.
It's the third consecutive day of falls, and seven of the past eight trading days have ended in the red. Iron ore miners were on the nose again today, as was supermarket retailer Woolworths Limited (ASX: WOW), which fell 2%. You can read why Woolies is falling here.
Here's our view on four stocks taking a tumble today…
BC Iron Limited (ASX: BCI) dropped 12.2% to 57.5 cents. The iron ore miner has now lost 89% of its value over the past year, as the iron ore price dramatically slumps. Overnight, the red metal fell 4% to new five-year lows of US$71.80 per tonne, and concerns are now rising that Australia's junior miners are operating at a loss.
Seven Group Holdings Ltd (ASX: SVW) lost 9.2% today to close at $5.90. The investment group, which owns the Westrac mining equipment business in Australia, and a stake in Seven West Media Ltd (ASX: SWM), held its AGM today. Chief Financial Officer Richard Richards noted that the company continues to see tough operating conditions in the mining sector, forecasting earnings to fall by 10% to 15% in the 2015 financial year – something we warned about in October.
Ainsworth Game Technology Limited (ASX: AGI) fell 8.5% to close at $2.49 today, after the poker machine maker warned that falling domestic sales would lead to a 30% fall in local sales, and a lower profit in the first half of the 2015 financial year. An increase in international sales though should see the company report a full year profit higher than the previous year.
Fortescue Metals Group Limited (ASX: FMG) fell to their lowest level in five years, closing down 7.7% at $2.74. Like BC Iron, the company has also been hit by the sliding iron ore price, but unlike BC Iron, Fortescue has a massive debt load the company needs to repay. Without strong cash flows from higher iron ore prices, the company could be forced to take drastic measures, such as renegotiating debt maturities, selling assets or allowing third-party miners access to its rail and port infrastructure.
