The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed up 0.3% at 5,588.3, the seventh consecutive days of gains. Bull market ahead?
With interest rates forecast to fall (if not this month then maybe in March), and the Australian dollar tumbling, the demand for yield is helping support the usual players.
Of course, that's no consolation for these four stocks, which were soundly beaten up today. Here's our view…
Tiger Resources Limited (ASX: TGS) crashed 55.5%, after majorly disappointing investors. The junior copper miner seems headed for a deeply discounted capital raising, or into the arms of a cashed-up player. Having taken on huge debts to buy out its 40% partner, and hit by falling copper prices and rising production costs, shareholders were looking for the exit.
CML Group Ltd (ASX: CGR) plunged 14.9% to 20 cents but is still up 8% since the start of the year. Formerly Careers MultiList, CML provides finance, payroll and employment services. Investors may not have liked today's announcement that the company had issued 5.5 million convertible notes but had fallen 4.9 million notes short of its target. Clearly a sign that many investors weren't keen on the notes, despite the 9% interest rate attached.
Construction and engineering company WDS Limited (ASX: WDS) lost 10.5% to close at 17 cents, most likely on the news that Shell had ditched plans for its US$20 billion plus Arrow LNG project in Queensland. WDS had been hoping to win more work in the space, after losing a contract on Origin Energy Limited's (ASX: ORG) APLNG project. More oil and gas companies could shelve work in Australia until oil prices recover, potentially leaving WDS with little work.
MaxiTRANS Industries Limited (ASX: MXI) dropped 8.9% to 51 cents, despite no news from the company. Shares in the trailer business have plunged 50% in the past six months, as weak markets continue to generate headwinds. MaxiTRANS noted in October 2014 that the first half of 2015 financial year net profit was likely to be significantly below the previous years, at between $4.5 and $5.3 million. Was it shareholders exiting the stock before the company reports worse-than-expected results?
