The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) traded up around 50 basis points on strong overseas leads today and a rebound in commodity prices, but that didn't stop several businesses plunging lower for multiple reasons. Let's have a look at what might be behind the performance of some of today's big fallers.
MGM Wireless Limited (ASX: MWR) shares dropped 27% to just 94 cents after the company announced it expects revenue and earnings to be lower for H1 FY16, compared to the prior corresponding period (pcp). Revenue is now expected to be $1.9 million versus $2.2 million in the pcp, with net profit expected to be just $0.1 million versus $0.6 million in the pcp. The company blamed increased competition in part for the declines and I expect the stock will remain under selling pressure.
Ten Network Holdings Limited (ASX: TEN) shares dropped 3% to 16.5 cents as the broadcaster continues to battle multiple headwinds as new technologies mean more competition and pressure on advertising revenues. The group recently conducted a capital raising at 15 cents and one of its flagship shows currently is the 'Big Bash' cricket that features a diet of heavy advertising by fried chicken merchants KFC. Ten is a stock best watched from the sidelines.
Capitol Health Ltd (ASX: CAJ) is a diagnostic imaging healthcare business that has come under heavy selling pressure after the government announced proposed cutbacks to diagnostic imaging spending at a fiscal review. The shares are down 3.5% to 28 cents today and down 65% over the last six months.
Slater & Gordon Limited (ASX: SGH) will be scrubbing rival law firm Maurice Blackburn off its Christmas card list after it announced it was looking into a class action against Slater and Gordon for breaching its duties under the financial services laws. Slater & Gordon shares were down 6.6% today to 91.5 cents, with the potential for a class action being brought against Slater & Gordon itself completing the management team's humiliation in 2015.
