The S&P/ASX 200 (Index: ^AJXO) (ASX: XJO) is heading for a spectacular six straight days of gains this afternoon, although several stocks are heading in the opposite direction for differing reasons.
Let's take a look at what may be causing investors to head for the exits across some of today's big fallers.
Bulletproof Group Ltd (ASX: BPF) shares are down 13.7% to 34.5 cents this afternoon after the company warned that full year earnings before interest and tax would be in the region of 25% lower on the prior year. The cloud services consultants blamed the result on higher costs, less work than anticipated in New Zealand, and investments for growth that are expected to pay off in the new financial year. Despite a disappointing update today, the business sits within a growth sector and may keep growing nicely in the years ahead.
RCG Corporation Limited (ASX: RCG) shares are down 4% to $3.82 this afternoon, but are still up more than 50% over the past year as the Athlete's Foot shoe and sportswear retailer continues to deliver decent same-store sales growth. It recently acquired the Hype DC street fashion shoe stores and today's share selling is probably little more than investors taking a breather after the stock went for a long run during 2016.
Kathmandu Holdings Ltd (ASX: KMD) shares are down 4.4% today after a strong climb on the back of a substantial upgrade to profit expectations for its financial year ending July 31 2016. Since the upgrade announced on June 29 the stock has ascended more than 20% as investors welcome the prospect a net profit expected to be up around 60% over the prior year. Over a five-year period though the stock is down 5%, with a price chart showing more ups and downs than a Himalayan footpath, investors then may be better off looking elsewhere for solid long-term returns.
XPED Ltd (ASX: XPE) is a speculative tech stock that has fallen 4% to 7 cents today despite the company releasing no news to the market. It claims to have developed a technology that could allow consumers to connect everyday electronic devices to the internet as part of the predicted emergence of the Internet of Things. The company has a whopping market value more than $100 million, but no revenues from the sale of any products as at March 31 2016. This business reportedly has some exciting potential, but in my opinion it looks a stock to watch from the sidelines for now.
