Here’s why these 4 ASX shares are sliding today
The local S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has risen strongly today, rising above 5000 points in a rally sparked by a rising iron ore price. Unfortunately, however, not every company is benefiting from the rally…
Coca-Cola Amatil Ltd (ASX: CCL) shares have retreated 3.1% today to trade at $8.48, erasing many of the gains achieved over the last week. However, the likely reason the shares are falling today is because the shares are now trading ex-dividend. The company declared a partially franked dividend of 23.5 cents per share when it reported its full-year profit results last week, so investors holding the shares entering into today’s session are entitled to that payment.
Cover-More Group Ltd (ASX: CVO) shares have also fallen heavily today, losing 6% to trade at just $1.635. Notably, they traded as high as $2.12 earlier this month but have come under heavy selling pressure following their poor earnings result for the first half of financial year 2016. Revenue fell while earnings before interest, tax, depreciation and amortisation (EBITDA) were also down more than 16%, in part due to the weak Australian dollar.
MMA Offshore Ltd (ASX: MRM) delivered a very poor earnings result today, reporting revenue and net profit after tax that were 32.2% and 82.8% lower than in the prior corresponding period. The company is struggling under the weight of the falling oil price, while it also said it expects second half earnings to be “significantly lower” than the first half. The shares have fallen 4.6% to 31.5 cents, but traded as much as 13.6% lower earlier in the day.
G8 Education Ltd (ASX: GEM) shares have shed 5.6% today to trade at $3.22, although they did fall as much as 9% earlier in the session. Although it increased revenue and underlying earnings before interest and tax (EBIT) by 44% and 45%, respectively, its underlying earnings per share result (23.9 cents) may have been slightly less than what the market had expected. It paid a total of 24 cents per share (fully franked) for the year, representing a trailing yield of 7.5% (or 10.6% when grossed up).
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Motley Fool contributor Ryan Newman 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. You can follow Ryan on Twitter @ASXvalueinvest.
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.
The local S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has risen strongly today, rising above 5000 points in a rally sparked by a rising iron ore price. Unfortunately, however, not every company is benefiting from the rally?
Coca-Cola Amatil Ltd (ASX: CCL) shares have retreated 3.1% today to trade at $8.48, erasing many of the gains achieved over the last week. However, the likely reason the shares are falling today is because the shares are now trading ex-dividend. The company declared a partially franked dividend of 23.5 cents per share when it reported its full-year profit results last week, so investors…