In a stunning late turnaround the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) reversed its declines and finished the day marginally higher by 0.1% to 5,562 points.
It wasn’t good news all round though unfortunately. Four shares that were acting as a drag on the market today are as follows:
Aconex Ltd (ASX: ACX) shares dropped over 4% to $8.02 after releasing a few details about its full year results to the market. When the market darling announced it would report its full year results on August 23, it also mentioned that its fourth quarter performance was consistent with expectations. Whilst this is normally positive news, I believe the market had been anticipating a performance that exceeded expectations.
Aconex’s share price has rocketed higher by 54% this year.
Admedus Ltd (ASX: AHZ) shares dropped almost 17% to 37.5 cents after announcing its capital raising plans just 16 months after its last raise. The company stated that the capital raising will be used to fund the company’s ongoing operations, including a ramp up of manufacturing and new product development. This capital raising clearly hasn’t gone down well with investors, leading many to head for the exits.
Admedus Ltd’s share price is now down over 45% this year.
MG Unit Trust (ASX: MGC) shares dropped over 8% to $1.14 after announcing the loss of a key supply contract with Woolworths. The contract was worth over $100 million in annual sales to Murray Goulburn. Management has tried to reassure shareholders by stating that it plans to adjust future manufacturing planning to redirect this capacity to other markets. But so far it appears to have failed to convince shareholders that this plan will be successful.
MG Unit Trust’s share price has lost over half of its value this year.
Yellow Brick Road Holdings Ltd (ASX: YBR) shares fell around 5% to 19.5 cents after the wealth management company reported its fourth quarter results. Although by no means a bad performance, the results reveal that the company is falling a long way behind its 2020 mortgage book target of $100 billion. Currently the company’s mortgage book stands at $37.8 billion, after growing an impressive 23% year on year.
Yellow Brick Road shares are down by around 30% in 2016.
Finally, if your portfolio took a hit today then I would highly recommend that you check to see if you own one of these three rotten ASX shares. Each one of them could be harming your portfolio and might be best swapped out in my opinion.
After a double-digit rally for the ASX since 2016 lows, investors should be on high alert. You’ll find a full rundown below of 3 shares we think you should avoid today plus one top pick worth buying, even if the market turns south and the RBA keeps rates at an “emergency low.” Simply click here to uncover these stocks.
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.