The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has dropped 0.4% after the RBA kept interest rates on hold and the market plunged into negative territory. At the close, the index was at 5,933.9.
Just 3 companies in the top 20 managed to post positive gains today.
These four stocks, by comparison, were heavily sold down by investors. Here’s our take…
eServGlobal Ltd (ASX: ESV) sank 13.6% to 47.5 cents as investors digested the news that CEO Paolo Montessori was stepping down immediately. No explanation was given for the sudden departure, with Montessori only appointed in April 2013. eServGlobal says Stephen Blundell, the current chief operating office will assume the temporary CEO’s role until a successor is found. eServGlobal provides mobile money and other mobile financial services.
Boart Longyear Limited (ASX: BLY) dropped 10.4% to 21.5 cents, despite yesterday’s ASX notices of directors buying additional shares in the beleaguered mining services company. Peter Day bought 125,000 shares on market while Bret Clayton purchased an initial 300,000 shares on market. Boart has recently been recapitalised in order to continue as a going concern, but investors clearly still have doubts.
Collins Foods Ltd (ASX: CKF) fell 7% to $2.53. The company owns and operates 26 Sizzler restaurants in Queensland and 172 KFC outlets in Queensland, Northern Territory and Western Australia and another 61 franchised Sizzler restaurants in Asia. Despite today’s fall, shares are still up 37% over the past year. Perhaps investors have taken their cue from fund manager Allan Gray Australia, which has been lightening its holding in the company and now owns 17.7%, down from 18.7%.
Grays Ecommerce Group Ltd (ASX: GEG) fell 5.6% to $1.18 and has now fallen 10% since last week. Perhaps investors weren’t inspired by the company’s recent half results – where net profit rose 142% to $1.2 million on the back of a 29% increase in revenue to $100.4 million. Grays owns two online businesses B2B and B2C. B2B is focused on business facing online sites while B2C segment includes the graysonline, DealsDirect, OO.com.au and TopBuy brands.