It looks as though the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is going to finish the week with yet another decline. In afternoon trade the benchmark index is lower by 0.8% to 5,183 points.
Four shares which have unfortunately fallen even further today are listed below. Here's why they've dropped:
Flight Centre Travel Group Ltd (ASX: FLT) shares have plunged 7.5% to $30.48 following the release of a trading update which revealed that tough trading conditions could result in a significant drop in profit for the full year. Underlying profit before tax is expected to be between $320 million and $355 million this year, compared to $352 million last year. Despite this I still believe that Flight Centre represents a great long-term investment.
Genworth Mortgage Insurance Australia (ASX: GMA) shares have dropped 8% to $2.78 after revealing a sharp drop in third quarter profits. Reported net profit after tax fell 28.7% in the quarter thanks largely to difficult trading conditions at the high loan-to-value ratio side of the market. Although it may look cheap, I would caution against an investment as things look likely to get worse before they get better.
Mayne Pharma Group Ltd (ASX: MYX) shares have fallen 13% to $1.48 after Bloomberg reported that the US Department of Justice will soon file charges against a number of generic pharmaceutical companies in a criminal investigation into suspected price collusion. Considering Mayne Pharma made the market aware of this back in June, I'm surprised to see its shares plummet today. Management has said the investigation was not expected to have a material impact on profits, which could make Mayne Pharma a bit of a bargain now in my opinion.
Resolute Mining Limited (ASX: RSG) shares are down over 5.5% to $1.63. The majority of Australia's leading gold producers have dropped lower today despite the gold price remaining steady. This looks likely to be a case of profit taking. After all, the rising gold price due to U.S. election uncertainty has meant that the gold producers are amongst the only shares making notable gains this week.
