So far today the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is just managing to keep its head above water and in afternoon trade is up 0.1% to 5,333 points.
Acting as a major drag on the market today have been four shares in particular. Each has dropped significant lower, here's why…
Aconex Ltd (ASX: ACX) shares have plunged for a fourth trading session in a row. This time its shares have dropped 7% to $4.50. The only news out of the company this week has been the planned retirement of its CFO next year. Although I would class this as a non-event, the market appears to see things differently. In my opinion the fall in Aconex's share price makes it even more appealing as a long-term buy and hold investment.
Fortescue Metals Group Limited (ASX: FMG) shares have dropped 3% to $5.90 after iron ore prices plunged 6.5% overnight. Reports in the Fairfax Media indicate that even producers think these high prices are unsustainable. As a result I wouldn't be surprised to see prices continue to tumble over the next few months. Now might be a great time to take a profit and move out of the iron ore miners in my opinion.
iCar Asia Ltd (ASX: ICQ) shares are down 13% to 20 cents after it emerged that two non-executive directors from Carsales.Com Ltd (ASX: CAR) have resigned from its board. This could be a sign that Carsales has lost patience with the underperforming company and plans to dump its 16.5% stake. Alternatively, a bullish view could be that it plans to launch a takeover in a bid to turn around its fortunes.
Mayne Pharma Group Ltd (ASX: MYX) shares have fallen 5% to $1.56 despite no news out of the pharmaceutical company. The company is currently being investigated by the US Department of Justice regarding price-fixing. Although it does not expect any penalties imposed to be material to earnings, until the matter is resolved I suspect its shares could remain volatile. I still see the company as a great buy and hold investment and would view the current weakness as a buying opportunity.
