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CRASH: Why the OzForex Group Ltd share price plummeted 39% today

SPLAT.

Shares of currency exchange business OzForex Group Ltd (ASX: OFX) have been absolutely crushed today, falling $1.20 or 39% to around $1.88 a share. That compares to a 0.4% decline for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).

Source: Yahoo! Finance

Source: Yahoo! Finance

The plunge follows two announcements made by the group this morning. Firstly, it has terminated discussions with Western Union, which was considered a suitor for the business. Secondly, it made a significant cut to its forecast earnings for the 2016 financial year.

You can read more about both updates, here.

OzForex’s shares have now fallen nearly 43% since the beginning of the year, while they’re down 47% since peaking at $3.55 in November 2015.

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Motley Fool contributor Ryan Newman 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. You can follow Ryan on Twitter @ASXvalueinvest.

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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