The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) staged a late rally, before closing down just 0.09% at 5,814.9. It also signaled the end of the record 12 consecutive days of gains.
While it could've been worse – US markets were down more than 0.3% – it wasn't as bad as these four stocks.
Coffey International Limited (ASX: COF) crashed down 17.2% to 24 cents, after the consultant to the resources industry reported a 50% fall in net profit, as revenues also fell. Contracted 12-month forward fee revenue for its largest division Geoservices fell 15% to $86 million, and margins remain under pressure. The result shows that we have yet to see any recovery in the mining services sector, and more bad news is likely.
Satellite hopeful Newsat Limited (ASX: NWT) sank 17.2% to 12 cents. While the company didn't release any news today, it faces a number of headwinds, including contract issues with the builder of its satellite, Lockheed Martin, and a dispute over payments. Newsat is reportedly considering suing one of its US funders, Ex-Im Bank over the payments issue, and is reportedly considering an equity raising.
Fairfax Media Limited (ASX: FXJ) dropped 8.9% to 87.5 cents after key shareholder and billionaire Gina Rinehart sold her full 14.9% stake in the company at a big discount to the existing share price. According to the Australian Financial Review (AFR), she made a 5% profit on her investment, and freed up $305 million ahead of the opening of the $10 billion Roy Hill iron ore mine.
Another mining services and products company Imdex Limited (ASX: IMD) dropped 8.5% to 32.5 cents. Imdex supplies drilling fluids and downhole instrumentation primarily to exploration and development companies. But with the oil price at less than half its price in June 2014, oil and gas exploration is likely to taper off – signs in the US suggest it has already fallen significantly – creating a huge headwind for companies like Imdex.
