It's a tough day when the All Ordinaries (index: ^AORD) (ASX: XAO) rises 1.5% and your company goes backwards.
Energy and resources stocks led the way, after commodities prices rose overnight, with some investors believing we've hit the bottom and are on the way back up. I'm not so sure about that, and certainly wouldn't want to bet the house on mining stocks just now (or at all).
Still, plenty of industrials companies were heavily sold off by investors today. Here's our view on four of them.
Cloud-accounting firm Xero FPO NZ (ASX: XRO) plunged 10.3% to $20.32, after reporting mixed results for the year ending March 2015. Xero reported a net loss after tax of $69.5 million, despite subscription revenues rising 81% over the previous year. Paying customers also climbed, rising 67% to 475,000. Colleague Owen Raskiewicz is bullish on the company – and here's his coverage of the results.
Resmed Inc. (CHESS) (ASX: RMD) saw its shares sink 9.7% to $8.46 after reporting a slight decline in gross profit for the March 2015 quarter. The company which provides products to help sufferers of sleep apnea, saw some margin compression, as revenues rose 6% to US$422.5 million. After rising 51% in the past six months, perhaps some of the frothy 'hope' has been blown out of the share price. As a long-term shareholder of Resmed, it's but a mere blip.
Buru Energy Limited (ASX: BRU) fell 5.8%, but is still up 33% since the start of the year, as oil prices recover. Still, the fall may have something to do with today's announcement of the resignation of non-executive director Peter Jones, who was suffering from ill health. Mr Jones was the founding chairman of ARC Energy – the company from which Buru was born. Buru has petroleum assets in the Canning Basin in Western Australia.
TNG Limited (ASX: TNG) slipped 8.8% to 15.5 cents, after the resources company announced that it had issued 15.7 million shares at an issue price of 13 cents to raise $2 million from a strategic Hong Kong institutional investor. Cleary investors weren't happy that shares had been issued to an external party for a huge discount, further diluting their holdings. TNG is attempting to develop the Mount Peake Vanadium-titanium-iron project in the Northern Territory.
