The S&P/All Ordinaries (ASX: AORD) (ASX: XAO) has posted its best day of the year, rising 1.5% (yep, we've had just 14 trading days so far).
Much of that is due to expectations that stockmarkets around the world will be swimming in loads of free money fairly soon. Well, Europe is expected to unleash quantitative easing this week to help its struggling countries generate some economic growth. That means more stimulus to get banks' lending, and companies striving for growth.
But that didn't stop these five companies from being sold off…
RCR Tomlinson Limited (ASX: RCR) fell 6.8% to $2.21. The construction and engineering company has gained 34% since December 9, after the company announced a buy-back program of up to $2 million shares on the market. Clearly the company believed its shares were cheap at the time after the company was sold off, despite producing a 22% increase in net profit in the 2014 financial year. While shares in RCR look cheap, it is still heavily exposed to the mining sector.
ASG Group Limited (ASX: ASZ) lost 4.7% to 61 cents and are now down 17% in the past 3 months. The IT management and consulting services company had a solid year in 2014, winning $200 million worth of new business and growing revenues by 5%. 76% of revenues is recurring, and this financial year should be a continuation of last year, according to the company.
Tiger Resources Limited (ASX: TGS) dropped 4.3% to 11 cents. The small copper miner with the Kipoi Copper Project in the Democratic Republic of the Congo (DRC) has seen its shares fall 30% in the past five days and 73% since January 2014. Falling copper prices amidst strong oversupply is hampering the company, as is weaker Chinese growth.
Fleetwood Corporation Limited (ASX: FWD) also fell 4.3% to close at $1.56, despite no news from the mobile village developer and caravan manufacturer. It's almost hard to believe that just two years ago, shares in Fleetwood were trading above $10, but falling utilisation of the Searipple village, and a complete drop off in caravan sales hammered the company. It remains to be seen whether Fleetwood can come back from here.
PAS Group Ltd (ASX: PGR) was another losing 4.3%, closing at 67 cents. The fashion retailer listed on the ASX in June 2014 and rapidly saw its shares fall from the issue price of $1.15 to 95 cents. The retailer is suffering from weak consumer sentiment, and in December announced that gross earnings were likely to be down between 10% and 15% in the 2015 financial year, compared to prospectus forecasts.
