The Australian sharemarket has extended its gradual recovery today thanks to a rise in commodity prices and international equity markets overnight. The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is up 0.3% at 5670 points, while the broader ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) has risen 0.2%.
While it has been a good day for Australian stocks in general these five companies have seen their share prices smashed.
Prima BioMed Limited (ASX: PRR) shares have been hammered nearly 40% today, having fallen from 16 cents as at yesterday's close to 9.7 cents at around 11 am. While that is terrible for investors who piled into the stock yesterday, investors who owned the stock earlier in the week are likely taking some of their cash off the table after its incredible 627% gain since Monday (you read that correctly). Prima BioMed isn't the only biotech stock acting as a drag on the market.
Prana Biotechnology Limited (ASX: PBT) has also fallen 7.9% after falling by as much as 13.2% earlier in the session. Like Prima BioMed, Prana enjoyed a strong lift in price yesterday and it's likely that the market's excitement is simply wearing off. You can read more about that, here.
Cash Converters International Limited (ASX: CCV) has tested the market's patience over the last few months, having lost nearly a third of its value since February. The stock extended its slide today, falling a further 5.7% to just 74 cents despite the absence of any company-specific news.
Notably, Cash Converters' competitor Money3 Corporation Limited (ASX: MNY) has also fallen 3.9% for the day giving it a loss of 31% in a similar period of time to Cash Converters. Today's losses for both stocks can likely be attributed to the fact that the market is becoming increasingly uncomfortable with the threat of further regulation on small credit lenders.
OrotonGroup Limited (ASX: ORL) is arguably the biggest loser of the day, having fallen by as much as 25% earlier in the session. By 11am it had managed to regain some of those losses, although it was still trading 15.2% lower at $2.17. The retailer issued a profit warning stating that it expects earnings before interest and tax (EBIT) to be just $4.5 million, compared to last year's figure of $13.3 million. The stock has now fallen 44% over the last 12 months, and 77% since early 2011.
With the local sharemarket still hovering well below its recent highs, now could be a great time to start buying shares in underappreciated companies.
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