Today saw another torrid sell-off for the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO), which initially lost more than 2% in early trade before finishing the day down 1.2% to 4,824 points.
A number of shares fell substantially further, mostly as a result of interim reports that disappointed shareholders:
Carsales.Com Ltd (ASX: CAR) fell 4% to $10.66 after shareholders were disappointed with its half-yearly results, which saw revenue grow 11% and profit grow 10%. With a Price to Earnings (P/E) ratio in the mid-20's, Carsales is arguably priced for growth of greater than 10% per annum. Readers could also have interpreted the CEO's comment "…we anticipate revenue and EBITDA to remain solid throughout H2 FY16, while NPAT will grow more moderately" to indicate that Carsales' growth prospects could slow somewhat in the near term. Furthermore, Carsales suffers from higher than average short-seller interest.
Carsales shares are up 3% in the past 12 months.
Mesoblast Limited (ASX:MSB) lost 9% to $1.24 today, taking the last month's fall to a total of 29%. Curiously, the company's fall comes soon after Credit Suisse highlighted Mesoblast's blockbuster potential, suggesting shares could soon be worth a multiple of their current value. However, there are also several large risks to the Mesoblast investment thesis including its cash burn and regulatory barriers as well as the outcome of ongoing trials, and further volatility in its share price should be expected.
Mesoblast shares are down 72% in the past 12 months.
Nearmap Ltd (ASX:NEA) dropped 8% to $0.33 after the company released its interim report to the market this morning, revealing a 21% increase in revenue as well as a 21% lift in Earnings Before Interest and Tax (EBIT). It seems Nearmap's results disappointed the market, although the company's performance was solid, with particularly strong growth in its Australian business. Nearmap remains well funded to continue its expansion, although it is unknown where its share price will head from here.
Nearmap shares are down 41% in the past 12 months.
Computershare Limited (ASX:CPU) Lost 8% to $9.60, also thanks to shareholder dissatisfaction with its half-yearly report. As Computershare's earnings are denominated in US dollars despite the company having operations globally, a strengthening US currency actually puts downwards pressure on its profits. Investors are also likely to be nervous over management comments that the operating environment appeared to be softening. However, with shares the cheapest they've been since early 2013, investors might be more willing to take a closer look at Computershare.
Computershare shares are down 16% in the past 12 months.
