In early afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back from yesterday?s slump with a small gain. At the time of writing the index is higher by 0.1% to 5,233 points.
Although things have improved for the index, the respective prices of the four shares below have dropped significantly today. Here?s why:
Adairs Ltd (ASX: ADH) shares have dropped a massive 40% to $1.52 after releasing a trading update to the market. The update revealed that due to weaker-than-expected trading in the first four months of FY 2017, the homeware retailer has revised its full year…
In early afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back from yesterday’s slump with a small gain. At the time of writing the index is higher by 0.1% to 5,233 points.
Although things have improved for the index, the respective prices of the four shares below have dropped significantly today. Here’s why:
Adairs Ltd (ASX: ADH) shares have dropped a massive 40% to $1.52 after releasing a trading update to the market. The update revealed that due to weaker-than-expected trading in the first four months of FY 2017, the homeware retailer has revised its full year guidance. Adairs now expects earnings per share to drop 15% year on year in FY 2017.
Fairfax Media Limited (ASX: FXJ) shares have plunged 5.5% to 76.5 cents after it released a trading update at its AGM today. Although its flagship Domain business is currently seeing a small rise in revenue, it has advised that new real estate listings volumes at the end of October are down 18% in Sydney and 5% in Melbourne. As a result the segment’s half year earnings are likely to be lower than the previous corresponding period.
SmartTrans Holdings Limited (ASX: SMA) shares have continued to fall by 12% to 1.5 cents. This means that the smartphone payment provider’s share price has now fallen by around 42% this week. The reason is likely to be its recent quarterly update which revealed a disappointing drop in sales quarter on quarter. Whilst the company has bold ambitions for growth in the future, it is too early to make an investment in my opinion.
Vita Group Limited (ASX: VTG) shares have plummeted 6% to $3.36 today to bring its total decline in the last five trading sessions to 29%. A combination of profit taking and fears over the new deal it is negotiating with Telstra Corporation Ltd (ASX: TLS) are likely to be the cause. As the Telstra retail stores it operates are pivotal to Vita Group’s overall business, the sooner the company and Telstra announce the new terms the better. If the terms are relatively unchanged then Vita Group could prove to be an absolute bargain buy after its price falls.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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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