Here’s why these 4 shares crashed on the market today

Credit:Daniel Haller

It was a mediocre Monday for the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO), which lost 0.2%, trading effectively flat at 4,965 points. However, a number of companies were hit particularly hard as we continue to move through interim reporting season.

Here’s what you need to know:

The Capitol Health Ltd (ASX: CAJ) share price crashed 18% to $0.16, taking their total fall for the year to 81% after the cancellation of its dividend and a disappointing profit result this morning. Capitol’s Net Profit After Tax (NPAT) fell more than 50% to just $2.2m, partly as a result of acquisition and restructuring costs. Capitol Health also carries debt of $97m, more than its market cap of $86m.

Investors may also be worried about systemic risks in the diagnostic imaging sector, with government reviews into potential wasteful or unnecessary healthcare spending still ongoing.

Ozforex Group Ltd (ASX: OFX) shareholders had an extraordinarily rough day, with the company’s share price plummeting 39% to $1.86, well below last Friday’s close of $3.05. The fall came as a result of two factors; a reduced earnings forecast combined with the withdrawal of Western Union’s non-binding bid for the company. Where the share price heads from here is anyone’s guess, although Ozforex may now be cheap enough for Western Union to consider submitting a binding offer at a lower price.

1-Page Ltd (ASX: 1PG) share price fell 6.6% to $2.66 on no news today as investor scepticism about the company’s potential continues to build. 1-Page has had a busy year, successfully growing clients and revenues, although judging by its share price the company appears to be progressing towards profitability slower than investors would like.

However, the company grew revenues by 20% in the most recent quarterly report, and expects to report another ‘material uplift’ in its next release. Having recently raised $50 million, 1-Page appears well funded to grow its way to profitability, although this depends on how much the company spent on its recent acquisition, which 1-Page has not disclosed.

Liquefied Natural Gas Ltd’s (ASX: LNG) share price dived 6% to $0.63 despite the company announcing that it had received final approval from the US Department of Energy to export LNG produced in the US to countries that did not have a free trade agreement with the USA.  LNG shares have experienced a heavy downturn in recent times after a crash in global oil and gas markets, which has increased investor uncertainty regarding the company’s projects.

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Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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