It’s been a good day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) which is currently higher by 1% to 5,152 points in afternoon trading. The gains have been seen across the board with all sectors except for the utilities sector performing well today.
Whilst most investors will be pleased with today’s trading, shareholders of a few companies will hope for an improvement tomorrow. At present these four shares are heading lower today:
CSG Limited (ASX: CSV) shares are trading lower by over 5% to $1.43 today despite no news being released to the market. Shareholders of the managed print services company have had a rocky 2016 fuelled by slowing growth and news that its executive team offloaded 3 million shares after its half-year results. Management has given full year EBITDA growth guidance of 13% to 25%. With the shares changing hands on a trailing PE ratio of 30, I believe the company would have to hit the high end of guidance to justify this premium.
CSG’s shares are down by around 7% in the last 12 months.
DUET Group (ASX: DUE) shares are down by over 3% to $2.43 today. The owner of regulated energy utility infrastructure businesses in Australia hit a 52-week high in the run up to the Brexit vote as investors sought safety in utility shares. Traditionally investors will head to utility shares when there are fears of a market meltdown. With international markets appearing to put the Brexit behind them now, it would seem that investors are selling out of their positions in utilities and moving back into the broader market.
DUET shares are still up by around 7% in the last three months.
EVOLUTION FPO (ASX: EVN) was down close to 3% to $3.87 today. Yesterday the gold miner released its June quarter and full year preliminary production results ahead of its investor day. Management stated that its full year result is expected to deliver record production in line with previous guidance. Whilst this is a great result, some investors were evidently anticipating more. As its share price has risen by over 60% in the last three months, it wouldn’t come as a huge surprise to see some profit taking going on today.
Evolution Mining’s share price is up 71% in 2016.
RCR Tomlinson Limited (ASX: RCR) shares are down by 5% to $1.71 today despite no news coming out of the company. It certainly has been an eventful year for the mining services provider. In April it announced it was exiting the coal services business with plans to close 14 local and two international operations. With sales and earnings expected to be hit by this reorganisation, investors initially headed to the exits in their droves dragging the share price down to $1.21. But since then a series of key contract wins has seen the share price rally higher by over 25%. Whilst things are looking a lot better for RCR, I would hold back until it is clear the reorganisation is working.
RCR Tomlinson’s share price is down by 21% in 2016.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. 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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