It wasn't mean to be.
The S&P/ASX 200 (Index: ^AAXJO) (ASX: XJO) opened up higher this morning, and the prospect of ending the day in positive territory seemed high.
But the index closed the day down 0.2%, with smaller iron ore miners crushed.
Here's our view of five ASX stocks sold off heavily today…
Atlas Iron Limited (ASX: AGO) dropped 16.7% today to 22 cents, and the share price is down 80% since January 2014. After the iron ore price fell 2% overnight to five year lows of US$76.46 a tonne, the smaller iron ore miners with higher production costs were always going to get hit today. At current prices, miners like Atlas are likely making a loss. The problem is that analysts are forecasting much lower prices ahead.
UGL Limited (ASX: UGL ) lost 14.6% to close at $5.89, after reporting cost overruns on a power station project in Western Australia. The engineering services company doesn't yet know what the financial impact will be, but its joint venture partner had indicated it was taking a provision of around $170 million.
Donaco International Ltd (ASX: DNA) share price has been very volatile recently. Today it was down 9.8% at 74 cents, following on from an 8.4% fall yesterday. The company owns and operates a casino in Vietnam, near the border with China, and has recently completely refurbished the existing hotel, massively expanding the number of rooms as well as gaming tables.
US oil producer Maverick Drilling and Exploration Ltd (ASX: MAD) has seen its share price drop 8.6% to 16 cents today, and has now lost 63% since January 2014. Maverick may be suffering from the current fall in oil prices, even suggesting in October that it might defer some activities until prices rebound – that is – if they rebound.
Fortescue Metals Group Limited (ASX: FMG) lost 8.5% to $3.03, its lowest price in a year. Fortescue is of course Australia's third largest iron ore producer, but it has relatively high production costs compared to Rio Tinto and BHP Billiton. Like Atlas, investors are worried the company is making a loss at current prices, or going very close. Fortescue also has the added issue of billions of dollars in debt.
