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

Credit: Alon

The S&P/ASX 200 (INDEXASX: ^AXJO)(ASX: XJO) rose today following a rise in oil prices and buoyant Asian markets.

Negative sentiment and trading updates punished a few companies however, and their share prices headed south. Here’s why:

Senetas Corporation Limited (ASX: SEN) shares crashed 25% to $0.14 after the company announced that previously forecast profits for the first half of 2016 were unlikely to materialise as a result of some temporary sales disruption from the company’s partner Gemalto, as well as delays to key government contracts.

Senetas now expects to earn Net Profit After Tax (NPAT) of between $1.7-$1.8m for the first half of 2016, compared with $2.8m in 2015. Second half profit is expected to come in on par with or slightly higher than the same half last year, for a total result of $5m for the 2016 financial year.

Despite the fall, Senetas shares are still up 84% for the year.

TFS Corporation Limited (ASX: TFC) lost 7.5% to $1.29 on no news today as an unusually high number of shares changed hands. 3.7 million shares were exchanged, compared to volume of 300,000 – 1  million shares on a normal day in the past couple of months.

The volume was high enough for the company to receive a price query from the ASX, to which TFS replied that it had no information to explain the trading in its securities. TFS reaffirmed its 2016 guidance for a 5%-10% increase in its Cash Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA).

Interested investors should check TFS announcements over the coming week or so to see if any major shareholders have been selling down.

Reject Shop Ltd (ASX: TRS) fell 7% to $10.74 on no news and average volume today, although that’s nothing for existing shareholders who have seen prices as low as $5.11 and as high as $12.12 in the past 12 months.

There has been little to note from the company since its annual report in August last year, and investors appear to be waiting for the first half update in mid-February before deciding which way to jump on the stock.

OZ Minerals Limited (ASX: OZL) dropped 4.6% to $3.84 along with falls at a number of other gold miners after small falls in the price of gold and a rise in the value of the Australian dollar. Investors also remain uncertain about commodity markets in general, and Oz Minerals shares have lost most of the gains made after a positive quarterly report made last Thursday.

Fellow gold miners St Barbara Ltd (ASX: SBM) and Sandfire Resources NL (ASX: SFR) lost 14% and 4.9% respectively.

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Motley Fool contributor Sean O'Neill owns shares of The Reject Shop Limited. 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.

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