4 shares sinking on the ASX today

A rollercoaster day on the markets saw the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) cross yesterday’s closing mark of 5,271.10 no less than 10 times. At the close, the index was up 0.2% at 5,279.10.

Among the top 20 largest caps, it was pretty much split evenly with half down and the other half up, with the big four banks finishing in the green.

But there was no such luck for these four companies, which saw their share prices sink…

Prophecy International Holdings Limited (ASX: PRO) saw its share price sink as low as $1.00, after downgrading its 2016 full year forecast and shares closed down 27.4% at $1.06. The IT security company said it now expected to see EBITDA between $5 and $7 million – down from its previous forecast of $8.9m – thanks to deferred sales in the third quarter. You can read our full coverage here.

Baby Bunting Group Ltd (ASX: BBN) saw its share price fall 2.4% to $2.41, despite no news from the company that sells prams, cots, car seats, nappies and other baby accessories. Some investors could perhaps be anticipating a worse-than-expected result when the company reports its full year financial results in August, despite an exceptionally strong first half result. Same store sales growth of over 9%, a 30% increase in sales, and earnings up more than 50% for the first half of 2016 was a pretty good result.

Atlas Iron Limited (ASX: AGO) saw its share price sink 9.1% to 2 cents, although as a penny share, a 1 cent move either way would be a 50% fall or rise. The iron ore miner has managed to survive low iron ore prices so far, including renegotiating its debt. But iron ore fell again overnight, and most experts agree that its more likely to fall further from here, particularly as new supply comes online. That spells trouble with a capital T for Atlas and its shareholders.

Kathmandu Holdings Ltd (ASX: KMD) saw its share price slide 4.9% to $1.365 and has now lost more than 10% in the past 5 business days. It seems the warmer weather has affected most major retailers, but Kathmandu relies on its winter clothing sales for a large chunk of its annual revenues more than most. The problem for Kathmandu is that climate change appears to be making our summers longer and hotter – something it is going to have to get used to.

These 3 large companies could thrash the market this year, with one already up 20%

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

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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