It has been a great day so far for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the index is up 0.4% to 5,744 points thanks largely to gains in the energy sector.
Unfortunately not all shares are climbing higher today though, with four shares in particular sinking like stones. Here's why:
The Capitol Health Ltd (ASX: CAJ) share price has dropped 9% to 15 cents after the diagnostic imaging company announced its first-half results and a $38.5 million capital raising. Revenue during the half rose 3% to $80 million, with net profit after tax flat at $2.2 million. Management expects favourable operating conditions and an improved regulatory outlook to result in a stronger second-half.
The Orocobre Limited (ASX: ORE) share price has plummeted 14% to $3.12 after the lithium miner reported first-half net profit after tax of US$7.4 million. This is a big improvement from the $20.4 million loss it made in the prior corresponding period. But investors were clearly disappointed that management revised its full-year production guidance down to between 12,000 and 12,500 tonnes from 15,000 tonnes.
The Resolute Mining Limited (ASX: RSG) share price has fallen 10.5% to $1.64 today despite the release of half-year results which revealed a first-half net profit of A$64 million. Pleasingly the gold miner is tracking ahead of its all-in sustaining cost (AISC) guidance, delivering an AISC of US$753 per ounce in the first half. Today's decline is likely to relate to a sell-off of gold miner shares and not its results.
The Slater & Gordon Limited (ASX: SGH) share price has plunged 20% to 10 cents. Today's decline means the embattled law firm's share price has now fallen over 36% this week following yesterday's disastrous half-year update. As tempting as it may be to bet on a turnaround, this is one share which I think investors should avoid at all costs.
