Welcome to the last day of 2015, Foolish readers. The S&P/ASX 200 (INDEXASX: ^AXJO)(ASX:XJO) finished flat for the year, and these four companies fell even further today.
Kina Securities Ltd (ASX: KSL) lost 5% to $1.09 in continuing volatility as investors are uncertain what to make of this recently listed, purely Papua New Guinean-focussed stockbroker, lender, and wealth manager. While Kina does carry additional sovereign and currency risks compared to local businesses, it also operates in a market growing more rapidly than the Australian one.
Kina further has a Tier One capital adequacy ratio of 31% (regulatory minimum 8%) and earns a net interest margin of 8% on its loans. These attributes are significantly higher than those enjoyed by Australian market-leader Commonwealth Bank of Australia (ASX: CBA), for example, and are enough to make Kina worthy of closer investigation.
Australian Dairy Farms Group (ASX: AHF) crashed 21% to $0.355 in what represents possible profit taking after yesterday’s 67% increase. Other dairy producers – who are in vogue right now because of the attractiveness of their target Chinese market – also fell in today’s trade, making profit taking look like a distinct possibility. Investors should remain cautious about how much potential growth the market is factoring in to these companies, before buying when prices have been soaring.
Slater & Gordon Limited (ASX:SGH) shares fell 3.5% to $0.83 as investors continue to weigh up the implications of management’s recent withdrawal of profit guidance as well as an ongoing ASIC investigation and potential regulatory changes in the UK. I wrote an article on the company – scheduling for publishing on Sunday – containing links to our earlier coverage of the company through the past six months, which may prove a useful starting point for readers looking to learn more.
EVOLUTION FPO (ASX: FPO) lost 4.5% today after the value of gold slumped overnight, although shares remain up 130% for the year. Shares in other gold miners like Western Areas Ltd (ASX: WSA) and Alacer Gold Corp – CDI (ASX: AQG) also fell on the news. Gold remains a contentious investment idea as some argue rising US interest rates increase the appeal of investments other than gold – thus reducing the appeal of (and demand for) gold.
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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 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.