The ALL ORDINARIES (Indexasx: XJO) (ASX: XJO) brushed off the Greek drama and managed to end the first day of the new financial year with a 1% gain, rising to 5,506 points. But it wasn't all one-way traffic and these 4 mid-cap stocks suffered heavy falls by comparison.
Mid-cap stocks are those that aren't the mega large companies on the ASX, but neither are they at the small end of the index. In this case, we're talking companies with market caps of between $200 million and $1 billion.
Beyond International Limited (ASX: BYI) crashed down 11.4% to $1.24 after the company released a profit downgrade yesterday. Beyond is primarily a TV production company, and blamed the 9% to 12% fall in operating profit after tax compared to last financial year on delayed negotiations with broadcasters. Beyond also announced an impairment of $2 million on specific TV program assets for the 12 months to June 2015. As a result, reported net profit will sink by 30% to 35% compared to last year.
Walnuts and onions producer Webster Limited (ASX: WBA) saw its shares drop 4.2% to $1.50, despite no specific company news. Webster is diversifying its operations and recently finalised its takeover offer for Tandou Limited (ASX: TAN). Tandou was engaged in production and marketing of cotton and cereal crops and also had a substantial water asset portfolio.
Iron ore miner Arrium Limited (ASX: ARI) saw its share price sink 3.7% to 13 cents. Iron ore prices sank more than 3% overnight to US$59.35 per tonne and many commentators are expecting much lower prices in future. As I outlined earlier today, supply is rapidly growing and already exceeds demand, which is falling. Arrium may well see its share price sink further along with the iron ore price.
Southern Cross Media Group Ltd (ASX: SXL) dropped 4.1% to 93 cents. Southern Cross operates a collection of media assets including free-to-air television, radio, digital and advertising. But the company is aligned with Ten Network Holdings Limited (ASX: TEN), which saw its shares drop 5.3% today to 18 cents. Streaming giant Netflix is making a huge impact on broadcasters as we outlined yesterday.
