The S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) went nowhere yesterday, closing down 0.2% at 5,438.9 points. The gold sector rose 1.4%, while the telecommunication services sector added 1.2%. The energy sector fell 0.9%, dragging on the index.
These four companies saw their share prices sink…
Clean TeQ Holdings Limited (ASX: CLQ) continues to fall, losing another 16.5% to 43 cents today, following the release of its Syerston Nickel & Cobalt pre-feasibility study (PFS) on October 5. It seems the market is much less enamoured about the A$906 million capital costs to get the project into production – and how the $189 million market cap Clean TeQ is going to find the funding for it.
Independence Group NL (ASX: IGO) saw its share price sink 5% to $3.82, perhaps as short-sellers increase their holdings, betting on the share price falling even further. The diversified nickel and gold miner has seen its share price soar more than 50% so far this year after acquiring Sirius Resources’ Nova project which is expected to begin production later this year.
Bellamy’s Australia Ltd (ASX: BAL) saw its share price fall 4.4% to $11.97. The baby formula producer is yet another of the stocks targeted by short sellers, but short interest is dropping – perhaps indicating that some hedge funds think the odds of the share price falling much further are small. Broker Morgans tipped Bellamy’s as one of its 9 small cap stars to buy this month – and it’s one company I hope to be holding for a very long time – despite today’s fall.
Class Ltd (ASX: CL1) saw its share price swing 8% lower to $3.46, and shares in the superannuation administration software provider have now lost 14% in the past 5 trading days. The share price may well be due for a bit of a pullback, given the shares are trading on a P/E ratio of ~70x. Yes the company has produced spectacular results so far, but that’s a lot of growth already priced in.