On a day when the All Ordinaries (Index: ^AORD) (ASX: XAO) gained 1.4% on the back of the RBA cutting interest rates, several stocks clearly weren't investors favourites and were heavily sold off.
Here's our view of five of them…
Gale Pacific Limited (ASX: GAP) dropped 13.2% to 16.5 cents and has now lost 23% since the start of this year. The maker of fabric shade sails still appears to be feeling the effects of its profit downgrade last week. Gale said it expects underlying first half net profit to be around $1 million – compared to $3.5 million in the previous year, but expects to report a strong second half.
Salmat Limited (ASX: SLM) sank 10.7% to $1.42. The provider of junk mail catalogues has seen its share price rise 15% since the start of this year, but down 32% over the past 12 months. That's despite the company forecasting revenue growth of between 12 and 15% and earnings in the range of $17 to $21 million this financial year, although the first half will be much poorer than the second.
Education provider Navitas Limited (ASX: NVT) fell 9.5% to close at $4.75, after announcing a 13% fall in first-half net profit, despite revenues growing by 14%. CEO Rod Jones says the company is on track to meet guidance of earnings before interest, tax, depreciation and amortisation (EBITDA) of between $162 and $172 million – a substantial increase from last year's $144.9 million. Clearly investors were disappointed and had expected more.
Admedus Ltd (ASX: AHZ) lost 8.7% to end at 10.5 cents, and is down 31% over the past 12 months. The small biotech stock continues to grow revenues selling its CardioCel product, a small medical patch used to repair holes and other heart defects in patients. In the December quarter, sales rose 23% over the previous year to $2.5 million, as more centres use CardioCel, but the company is yet to generate positive operating cash flow.
Maverick Drilling and Exploration Ltd (ASX: MAD) fell 6.3% to 15 cents and is back to where the price started the year. The oil producer and explorer, focused on the US shale regions, recently announced that it was going to lower its drilling plans in the face of lower oil prices. But the key question is what Maverick is going to do with its US$500 million debt facility. Clearly, acquisitions are on the cards.
