The pessimists have returned in a big way today.
Following on from a three-day long rally, investors have again turned their attention back to Greece and the falling iron ore price, causing the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) to tumble 1.3% to 5,528 points, but not before hitting a low of 5,491 earlier in the session.
If you thought that was bad, here are four stocks that are performing even worse than the market itself…
G8 Education Ltd (ASX: GEM) has continued its rapid descent today after it announced its intentions to purchase junior rival Affinity Education Group Ltd (ASX: AFJ). The the once high-flying childcare operator will have to issue new shares to complete the acquisition (offering one of its own shares for every 4.61 Affinity Education shares) which will have a dilution effect on shareholder ownership.
WHITEHAVEN COAL LIMITED (ASX: WHC) fell 7.8% as the market continued to respond to reports that China has rejected Australian coal due to quality concerns. According to the Australian Financial Review, it could cost the coal miners up to US$4 per tonne to get the quality up to scratch, which they simply do not have the luxury to do given the plummeting coal prices.
Pacific Brands Limited (ASX: PBG), the owner of brands such as Bonds and Sheridan, was one of the market's top-performing stocks on Thursday, rising 50.8% following an earnings upgrade. Given the company's poor performance in recent times, it's likely that some investors are choosing to take their profits, selling the shares 5.7% lower today.
Fortescue Metals Group Limited (ASX: FMG) has crashed 4.7% to trade at $1.82 after the iron ore price plunged 6% overnight. The commodity is now fetching just over US$55 a tonne, according to the Metal Bulletin, with many analysts fearing it could fall further before the end of the year.
Although conditions on the market have been somewhat calmer over the last three days, investors will continue to fret over the situation unfolding in Europe (and the commodity markets) until more certainty is attained. While there are some great bargains to be had across the market, investors should brace themselves for further volatility over the coming days.
With Greece and Iron Ore as the dominos, some experts are predicting a market crash…..
