The ALL ORDINARIES (ASX: ^AORD) (ASX: XAO) has closed the day up just 0.1% at 5,230.8 points, following weak leads from offshore markets overnight. In the US, the Dow Jones closed up just 0.1%, as did the broader S&P 500.
With no major catalysts to guide investors and traders, it seems many sat on their hands today, well, apart from shareholders in the following 4 companies who dumped their shares…
Lynas Corporation Limited (ASX: LYC) share price dropped 6.2% to 7.6 cents, despite no news from the company. The producer of rare earth oxides (REOs) has now seen its share price sink 22% so far this year – partly as a result of unveiling a $66 million loss earlier this month for the 2015 financial year.
The miner still has the same issue dogging it – its production costs are well above the price it is receiving for its product, and about the only thing that can save the company is higher commodity prices. That seems unlikely, although Lynas has managed to extend its debt through to 2018, so it does have some breathing space, but whether shareholders hang around long enough to find out remains to be seen.
PS&C Ltd (ASX: PSZ) share price dropped 4.9% to $0.77. The small IT services company has also seen its share price sink 22% so far in 2016, despite the company announcing a 51% increase in net profit for the first half of the 2016 financial year. Maybe shareholders and investors have finally cottoned on to the corporate spin – as we outlined in February – and are jumping ship. Foolish investors should be wary around management who aren't totally transparent when it comes to financial results.
iSelect Ltd (ASX: ISU) share price dropped 4.1% to $1.05. The insurance comparison website operator has expanded into comparisons of other services including car insurance, home loans utilities and broadband has seen its share price sink 35% in the past year, partly as a result of a shocking first half performance and a net loss. In a fiercely competitive market – and especially when its major competitor is a free government website – iSelect is not an investment grade business, and question marks have also been raised over the company's accounting policies.
DuluxGroup Limited (ASX: DLX) share price dropped 3.9% to $6.20. The paint, coatings and adhesives company has hardly released any news this year, but the share price has still been fairly volatile. From a high of $6.80 at the start of the year, the share price has plunged as low as $5.95, exhibiting the irrationality of the market. Why did the share price fall today? More than likely for no special reason, and it could easily regain all of today's fall tomorrow.
