The S&P / All Ordinaries Index (Index: ^AORD) (ASX: XAO) looks headed to break a four day losing streak, rising 0.4% in late-afternoon trading.
But a number of stocks are on the nose with investors today. Here we take a look at the plummeting share prices of four stocks…
Stavely Minerals Ltd (ASX: SVY) has crashed down 32% to 32 cents. The management team at resources explorer Stavely were formerly Integra Mining execs – before the company was acquired by gold miner Silver Lake Resources Ltd (ASX: SLR). Late last month, Stavely announced what appeared to be positive results from its drilling program at the Stavely Porphyry copper project in Victoria. Evidently, some investors, having digested the report were less than impressed, and sold up.
Thundelarra Ltd (ASX: THX) shares have lost 28% to 15.5 cents. Another junior resources company, Thundelarra is exploring for copper, gold and uranium in Australia. Yesterday the company released some drilling results from its Red Bore project in Western Australia. Clearly investors found nothing to like about the results and like Stavely above, sold down shares in the company.
Toro Energy Limited (ASX: TOE) shares have dropped more than 19% to 10.5 cents. Earlier today, Rum Jungle Resources Ltd (ASX: RUM) announced that it had earned 51% of potash rights in a number of exploration tenements owned by Toro Energy. Seems Toro may have missed out, although Rum Jungle shares were also lower.
Prana Biotechnology Limited (ASX: PBT) has seen its shares fall 12.1% to trade at 25.5 cents. Shares in the small biotech stock spiked on Friday September 5, after the company announced it had received 'orphan drug designation' from the US Food and Drug Administration (FDA), for its PBT2 drug, which is used to treat Huntington disease. Investors may feel that the news wasn't as good as initially thought. Prana shares have lost more than 66% of their value since the beginning of this year.
Investing in speculative small cap stocks like most of these means a wild ride for investors – with no guarantee of a high return in comparison to the high risks.
