The Motley Fool

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

It was another rough day for the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO) today, with the index losing 2.8% to 4,832 points. Further falls could put us below levels not seen in the past two years or more.

As ever, a number of stocks fell significantly further than the index today, and here’s why:

Myer Holdings Ltd (ASX: MYR) fell 5% to $1.02 on no news as the company continues to grapple with difficult trading conditions and heavy short interest. IOOF Holdings Limited (ASX: IFL) recently became a significant holder of Myer with a 5% stake, while Goldman Sachs has a significant short-selling interest in the stock. As of 9 am this morning, ASIC reports indicate that 17% of Myer’s issued shares were held for short-sell. With such high short interest, any missteps could have a heavy impact on Myer’s share price.

Myer shares are down 43% for the year.

Lifehealthcare Group Ltd (ASX: LHC) fell 6% to $2.48 as investor uncertainty over the group’s industry continues in the wake of a government investigation into the healthcare sector. Several insurers have claimed that the cost of implanting medical devices is a major source of unnecessary healthcare spending, and thus, shareholders worry Lifehealthcare could find itself on the receiving end of adverse government changes – much like those in the pathology and diagnostic imaging sectors.

(readers wanting to find out more about Lifehealthcare’s recent price fall should read this article),

Lifehealthcare shares are up just 0.3% over the past twelve months.

Impedimed Limited (ASX: IPD) lost 11% to $0.93 after the company announced it was raising funds in a manner that significantly disadvantaged existing shareholders. New shares worth A$75m will be issued to ‘sophisticated and professional investors’, at a price of $0.95 apiece, while existing shareholders will be able to subscribe for a total of A$7.5m in shares at a later date. Share prices often fall to the price new shares will be issued at, and the enormous amount of new shares Impedimed is issuing perhaps also spooked investors.

Impedimed shares are up 16% for the year.

Adacel Technologies Limited (ASX: ADA) fell 9% to $2.21 in what could be potential profit-taking after the company’s market update last week sent its share price up 20% in a single day. Since then, shares have declined roughly 10%. Adacel has been making waves with its rapid growth and soaring share price, and indeed, the company is small enough to keep growing for quite some time. However, readers will also want to be wary of how much growth is already factored into the share price.

Adacel shares are up 738% in the past twelve months.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool contributor Sean O'Neill owns shares of LifeHealthcare Group 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.

Related Articles...