Why these 4 shares are getting hammered today

Credit: Joits

Positive offshore leads and a bounce from the resources sector have helped the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) gain 0.45% today.

The positive mood hasn’t helped all shares, however, and these four have been hit particularly hard today:

Thorn Group Ltd (ASX: TGA)

Shares of Thorn Group have plummeted more than 20% today after the company provided revised profit guidance after the close of yesterday’s session. Following the completion of a strategic review, the company has announced it will be closing its TFS Consumer Loan business and writing off $6.7 million worth of goodwill associated with its NCML business. While Thorn’s underlying profit for FY16 is expected to be slightly higher than last year, its reported profit is now expected to come in between $19 million to $21 million – down from the $30.6 million reported profit in FY15. Despite today’s downgrade, Thorn’s core Radio Rentals business is still performing strongly and this will be the focus of management moving forward.

Thorn shares have lost more than 45% over the past 12 months.

Cash Converters International Ltd (ASX: CCV)

Cash Converters shares are struggling today after the company confirmed it has been served with a class action claim on behalf of borrowers from Queensland. The claim relates to borrowers who took out cash advance loans during the period from 28 April 2010 to 30 June 2013. Interestingly, Cash Converters had already been aware of a class action from Queensland borrowers in July 2015 so it is unclear whether this is an amended class action or a new claim. Cash Converters plans to vigorously defend the action in any case, but any news of legal disputes is usually unwelcomed by investors.

The shares have lost around 5% today and are down by around 42% over the past 12 months.

Computershare Limited  (ASX: CPU)

Shares of Computershare have lost more than 4.4% today after the company confirmed its FY16 earnings per share (EPS) are likely to be 7.5% lower than FY15 due to a softening operating environment. This was in line with the guidance given by Computershare in February, although some investors would have hoped for improved results considering the more positive conditions that have occurred throughout April. Computershare’s EPS growth has been disappointing since the GFC and the latest update is further proof that the company continues to face a number of headwinds moving forward.

Computershare shares have lost nearly 23% over the past 12 months.

Qantas Airways Limited (ASX: QAN)

Qantas shares have been in a downward spiral since last Monday and have lost another 2.1% today to trade at $3.27. The airline last week announced it was planning to cut its seat capacity as a result of weaker-than-expected domestic demand. The shares have lost around 20% of their value since the announcement, but today’s fall can probably be attributed to the strong overnight gains in crude oil. The commodity is now trading at 2016 highs and some analysts are expecting further gains over the course of the year.

Qantas shares have lost 6.5% over the past 12 months.

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Motley Fool contributor Christopher Georges owns shares of Cash Converters. The Motley Fool Australia owns shares of Computershare. 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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