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4 more stocks sinking on the ASX today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed down 0.3% at 5,413.6 following weak leads from offshore markets. In a day really of non-events, there was no change to the official cash rate by the RBA and today’s fall partly offsets yesterday’s 1.1% gain.

However, these four companies didn’t fare as well, falling much further than the market.

Eureka Group Holdings Ltd (ASX: EGH) saw its share price sink 6.4% to 73.5 cents, despite no news from the company. Eureka provides accommodation villages for senior Australians and recently purchased its 25th freehold village in Broken Hill, NSW. The company has acquired a number of retirement villages since 2014 and turned them into cheap accommodation for older Australians (not just retirees). Perhaps investors were switching into the aged care providers today as their shares went for a strong run.

Slater & Gordon Limited (ASX: SGH) saw its share price lose 4.3% to sink to 44.5 cents and a market cap of just $139 million. The shares have now lost half their value since the start of this year, although shares did jump around 10% yesterday. As we noted, it’s probably not a wise idea to read anything into today’s move as the share price for the troubled law firm is highly volatile.

Infigen Energy Ltd (ASX: IFN) fell 4.1% to 94.5 cents, but as we noted earlier today, the share price is up strongly so far this year (302%) as we wrote this morning. The wind farm and renewable energy company has sold off assets, cut its debt and reported strong growth in earnings. Today’s fall may well just be some investors taking profits – despite the company forecasting a strong 2017 financial year ahead.

Cash Converters International Ltd (ASX: CCV) fell 6.2% to 30.5 cents, and the share price has now lost 35% in the past month. The pawnbroker and personal finance company faces a class action from borrowers for charging excessive fees and interest between 2009 and 2013 and that is obviously hanging over the company’s head. The company is also in the process of restructuring its UK business and unprofitable – hence investors dislike for the company.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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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