The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has followed the lead of international markets and dropped lower today. In afternoon trade the index is down over 0.3% to 5,461 points.
Four shares in particular have been having even worse days. Here’s why they dropped lower today:
Iluka Resources Limited (ASX: ILU) shares have dropped 3% to $6 today despite there being no news out of the mineral sands miner. The last 12 months certainly have been tough for shareholders. During this time its share price has sunk by 20% as a result of a disappointing half year result. In July Iluka swung from a half year profit of $43.5 million in FY 2015, to a half year loss of $5.7 million in FY 2016.
Slater & Gordon Limited (ASX: SGH) shares have plunged almost 7% to 39.2 cents after it emerged that rival law firm Maurice Blackburn plans to serve it with a $250 million class action on behalf of 3,000 investors. The class action relates to the company’s alleged wrongdoing and its impact on the share price. If the class action does go ahead, it will go down as one of Australia’s largest shareholder actions in history. With Slater & Gordon’s debt piling high, it can ill afford another $250 million charge.
Vocus Communications Limited (ASX: VOC) shares are down 3.5% to $5.43 following the announcement of the resignation of James Spenceley and Tony Grist from its board. The resignation was a result of a difference of opinion between the departing directors and the board on the future leadership of the company. Although the internal politics at Vocus is not at all a pretty sight, its share price at these levels certainly is for investors. The growing telco looks to be an absolute steal following its recent falls in my opinion.
Whitehaven Coal Ltd (ASX: WHC) shares are down by almost 3% to $2.78 today. Although there was no news out of the coal miner, today’s decline is likely to be attributable to a sell rating placed on its shares by global investment bank UBS. According to a research note its analysts have downgraded Whitehaven on valuation grounds, setting a target price of $2.60. With its shares up 296% this year, now might be a great time for investors to lock in those gains.
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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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