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

Credit: Pieter van Marion

Today saw a heavy sell-off of the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO), which fell 1.6% to 4,915 points as at the time of writing.

A number of shares were heavily impacted, and many fell substantially further than the market. Here’s what you need to know:

Collins Foods Ltd (ASX: CKF) lost 7% to $3.98, possibly reflecting an investor re-think of the company’s value in light of a falling market. Collins Foods shares had recently hit an all-time high of $5.34, so perhaps there was room for a pullback – although the KFC restaurant operator continues to deliver finger-lickin’ good news to shareholders.  Same-store sales growth of 5% at the most recent interim report was a solid result given the subdued domestic environment. Collins Foods now trades on a Price to Earnings (P/E) ratio of 14, which is slightly below the market average.

Up 54% for the year, the company could still be worth a closer look for bargain hunters.

Senex Energy Ltd (ASX: SXY) dropped 9% to $0.24, and has now lost ~20% of its value in the past two days. Possibly the announcement of a lawsuit against the company is weighing on sentiment, although falling oil prices this week likely also had an impact. In my opinion, the lawsuit is unlikely to have a severe impact on Senex, which has an excellent cash position and is well positioned to endure the downturn in oil and gas prices, at least in the short term. Fellow gas hopeful, Liquefied Natural Gas Ltd (ASX: LNG) also experienced an off day, losing 8% to $0.47.

Senex shares are down 23% in the past 12 months.

1-Page Ltd (ASX: 1PG) fell 8% to $1 today, as investors continue to abandon ship in the wake of the company’s preliminary final report, which was released last week and revealed revenues of $412,629 compared to a widening loss of $14.3 million, up from $11.3 million previously. Despite having $48 million in cash, 1-Page has announced it is increasing its cash burn to $2 million per month, which possibly accelerated the market sell-off, with investors possibly fearing the company won’t be able to generate a return on its cash.

1-Page shares are down 47% in the past 12 months.

Greencross Limited (ASX: GXL) lost 6% to $7.21 on no news, possibly as a result of investors re-evaluating their investment in light of the silence from the bidding consortium following its latest rejected bid. I suspect continued volatility will affect the stock, and shares could even fall further from here, especially if the consortium announces it is no longer interested in buying Greencross. However, Greencross remains a ‘Hold’ in my books thanks to its organic growth potential. Prices of below $7 could be enough to get bargain hunters interested.

Greencross shares are down 6% in the past 12 months.

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Motley Fool contributor Sean O'Neill owns shares of Greencross Limited and Senex Energy Limited. 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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