5 ASX stocks sinking as All Ordinaries soars

ALL ORDINARIES soars 1.4%, but these 5 were dumped by investors

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The All Ordinaries (Index: ^AORD) (ASX: XAO) has soared 1.4% as investors regain their confidence, with bank HSBC signalling that the 'worst is over'. Whether that's right or wrong is still unproven, though.

Unfortunately for some investors, not all stocks are heading in the right direction. These 5 stocks have seen their share prices crunched…

Iluka Resources Limited (ASX: ILU) share price sunk 4.1% to $6.34. The mineral sands miner is highly dependent on zircon and titanium dioxide prices, which have sunk. China is the largest single customer for zircon worldwide, and a slowdown in China is likely to negatively impact on Iluka.

Syrah Resources Ltd (ASX: SYR) share price fell 3.6% to $2.43. Syrah is developing a huge graphite and vanadium mine, Balama in Mozambique, Africa and expects first production in the first quarter of 2017. Earlier this month, Syrah raised $211 million in capital to progress the development of the mine. Syrah's share price can be volatile, as indicated by its 46% fall over the past 12 months (partly as a result of the capital raising).

Independence Group NL (ASX: IGO) share price dropped 3.5% to $2.79. The nickel, gold, zinc and copper miner has completed a takeover of Sirius Resources, and recently reported record revenues of around $500 million. Independence Group also declared a final 2.5 cent dividend and expects to pay out 30% of earnings in future. Interestingly, Independence had no debt at the end of June 2015, and $121 million cash in the bank, but the share price continues to suffer.

Monadelphous Group Limited (ASX: MND) share price slipped another 3.1% to $6.26. The mining services company is under immense pressure, as falling commodity prices impact on its key clients. As the company recently reported a 20% fall in revenues and profits down 27.8%, the trend could be set to continue. Don't let the company's trailing fully franked dividend yield of 14.7% fool (lower case 'f') you, the dividend is likely to fall again next year – as we reported back in August.

FlexiGroup Limited (ASX: FXL) share price closed down 2.9% at $2.39 and have now lost a third of their value over the past 12 months. The company provides finance to the likes of consumer electronics retailers' customers, mobile phone retailer customers and solar system company customers, through brands such as FlexiRent, SmartWay, Certegy and Blink. The current price might be a huge opportunity – trading on a P/E of 8.8x and paying a fully franked dividend yield of 7.2%.

 

Motley Fool contributor Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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