MENU

Here’s why these 4 shares crashed on the market today

The ALL ORDINARIES continued its downward run today, losing 0.2% to be down 3.8% for the year, or 10% in the past six months. Resource stocks continue to be hammered as investors can’t see any light at the end of a pretty dark tunnel.

A number of other stocks have been sold off however, and some may even present as a buying opportunity at today’s prices:

WHITEHAVEN COAL LIMITED (ASX: WHC) is not one of them, even after its share price fell 7.1% to $0.627. Along with New Hope Corporation Limited (ASX: NHC), Whitehaven shares were hit hard by the successful resolution to the climate change talks in Paris over the weekend. With loads of debt and ultra-low coal prices pressuring revenue, Whitehaven is a very risky bet today.

Liquefied Natural Gas Ltd (ASX: LNG) also copped a hammering, diving 11.3% to $0.785 after the value of oil fell another 2% overnight. Investors are also uncertain about whether LNG’s two projects are financially viable in today’s depressed energy market, which means the company’s share price is likely to remain volatile. Along with Whitehaven coal, LNG looks to be a high-risk purchase today.

Navitas Limited (ASX:NVT) slipped 3.1% to $4.32 after the company announced it would close a small number of underperforming businesses in the USA as part of a drive to reduce costs and focus management’s time on value-creating businesses. The change is not expected to have any earnings impact on Navitas and the recurring nature of education earnings is likely to keep the company’s 4.8% dividend looking quite attractive.

Prophecy International Holdings Limited (ASX:PRO) plunged 12% to $1.69 on no news, although the sale could constitute profit-taking given that Prophecy has risen more than 300% in the past 12 months. Sales are still accelerating – as the company is fond of reminding the market – and first quarter sales were ahead of the same period last year.

Today’s price could represent a buying opportunity, although Prophecy currently trades on a Price to Earnings (P/E) ratio of 35 and investors should do their research on potential risk and reward before purchasing at today’s prices.

But wait...there's more!

Our resident dividend expert has just named his Top Dividend Stock for 2016. Not only are the shares dirt cheap, the company is trading on a 5.6% fully franked dividend yield. Simply click on the link and enter your email address to gain access to this comprehensive FREE investment report - no credit card details or payment required!

Yep, it's free, and includes the stock's name and code. Just click here now for your copy.

Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia owns shares of Prophecy International Holdings Ltd.. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.