The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to finish the week with a gain of 0.7% today. Overall, the market is down just over 1% for the week, which may seem surprising, given yesterday's huge fall.
Still, as we already know, that doesn't mean all stocks posted a positive return. Here's our view on 4 stocks that investors took a dislike to today.
Hastings High Yield Fund (ASX: HHY) fell 41.7% to 10.5 cents, after the company notified the market that its sole asset was likely to see nothing or a very low return of capital from its remaining asset. That sole asset is a floating rate note security in Cory Environmental – a waste collection, disposal and recycling business in the UK. It seems unusual that shares haven't fallen much further, given the potential for shares to be worthless.
Rewardle Holdings Ltd (ASX: RXH) dropped 10.5% to 34 cents after resuming trading, following a $5 million of more than 15 million shares at 33 cents per share. The company says the placement was heavily oversubscribed and justifies its strategy. Essentially, the company provides solutions for small to medium businesses with customer engagement tools -or as the company refers to it – 'giving the buy 9, get 1 free paper punch card a digital makeover'.
Southern Cross Electrical Engineer Ltd (ASX: SXE) ('SCEE') also dropped 10.5% to 34 cents, after announcing that it expected to make a loss in the second half of this year. SCEE also said its full-year net profit after tax is still uncertain. Yet another mining services company with an uncertain future by the looks of it.
Fortescue Metals Group Limited (ASX: FMG) dropped 5.7% to $2.00. The world's fourth-largest iron ore miner slumped as iron ore futures trading suggests another big fall in the spot iron ore price tonight. Already trading at or possibly below its break-even levels, Fortescue may well be forced to sell off assets, wholly or in part, to ensure the company survives an extended period of low iron ore prices.
