The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has gained 0.9% today, its third-consecutive day in the green.
Did someone say Santa Rally?
And that's despite some mixed economic news out lately. Retail sales for October were stronger than analysts expected, while the trade balance was a deficit of $1.3 billion.
While oil stocks have copped a pasting in the past few weeks, several companies put their hands up for a caning today…
Education provider Vocation Ltd (ASX: VET) saw its shares slammed down 67% at one stage today to 16.5 cents. At the close, shares had gained 3 cents to finish at 19.5 cents, and be down just 61%. Shares have now fallen more than 90% since October 22. Today, Vocation forecast that earnings for the 2015 financial year would be between $25 and $30 million – down from guidance of between $53 and $57 million given less than 2 weeks ago.
Mobile Embrace Ltd (ASX: MBE), a mobile payments and marketing company, saw its shares drop 20.5% to 17.5 cents. It seems a negative broker report was responsible for the fall today, according to anecdotal evidence. Earlier this week in what should have been a positive for the company, Mobile Embrace inked a deal with Singapore telco M1 Limited, to provide direct carrier billing to M1's customers.
PAS Group Ltd (ASX: PGR) shares fell 15.8% to 64 cents, with investors clearly not happy with the fashion retailer's announcement today that earnings before interest, tax, depreciation and amortisation (EBITDA) would be between 10% and 15% below what the company had forecast in its prospectus. PAS only listed on the ASX in June this year with shares offered at $1.15 in the IPO. Back in August, I wrote that it was one of the cheapest stocks on the ASX – clearly there was a valid reason why.
You'd probably be surprised that a company that has received a number of competing takeover offers would see its share price tank. But that's exactly what happened to Ten Network Holdings Limited (ASX: TEN) shares today. Shares fell 11.1% to 20 cents, despite a consortium bidding 23 cents a share for the company. Some of Australia's most well-known billionaires, including Gina Rinehart, are expected to realise losses of up to $400 million if the deal goes ahead at those prices.
