The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) closed flat despite early positive signs. The energy sector was the biggest drag on the index, losing 2.8%, as it appears OPEC will not cut oil production to prompt a rise in petroleum prices. The health care sector was the best performer, rising 1.9%.
But these five stocks were slammed down by the market today. Here's our view…
Buru Energy Limited (ASX: BRU) dropped 27.3% to close at 46.5 cents. The oil and gas explorer announced today what appear to be disappointing drilling results at its Ungani North 1 well. That's a normal day in the life of a speculative oil and gas company shareholder. A positive result could have seen the shares soar.
Mayne Pharma Group Limited (ASX: MYX) lost 16% to end at 63 cents. At the company's AGM today, CEO Scott Richards reported that the company was being impacted by declining prescription demand for its US Doryx tablets. As a result, revenues in the 2015 financial year so far were down 14% compared to the same period last year. Still, Mr Richards is confident of a stronger second half, but is that hope or a real expectation?
Vocation Limited (ASX: VET) slumped 15.1% to 53.5 cents, after Chairman John Dawkins resigned and the company reported that it had received a claim against it by shareholders alleging misleading conduct and breaching its continuous disclosure obligations. In mid-October, Vocation announced that the Victorian government was withholding $20 million of funding from one of the company's training organisations after a review – despite previous assurances that nothing material would come out of the review. You can find more details here.
The Reject Shop Limited (ASX: TRS) fell 10.8% to $6.35, its lowest price in more than five years. Earlier this week, fund manager BT Investment Management Ltd (ASX: BTT) announced that it had sold around 470,000 shares in the discount retailer, taking its stake to 8.4%, from 10% previously. With no news from the company, it appears that at least some of Reject's shareholders have become disenchanted with the company and are selling out. Which could prove a fabulous opportunity for contrarian investors.
Ainsworth Game Technology Ltd (ASX: AGI) closed down 7.8% to $2.24. Shares have now lost 50% of their value over the past 12 months, driven in large part by the company's recent announcement that it was expecting a weak first half, with domestic revenues down around 30%. But has the market taken a short term view or doesn't believe management? Ainsworth did note that it still expected to report a higher full year report this financial year than in 2014.
