After a week of ups and downs, the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is having a solid end to the week. In afternoon trade the index is 1% higher to 5,767 points.
Unfortunately not all shares are finishing the week so strongly. In fact, four shares in particular have taken a sharp drop today. Here's why:
The Collins Foods Ltd (ASX: CKF) share price has fallen 7% to $5.46 following a successful $54.5 million placement at $5.25 per share. The funds will be used to acquire 16 KFC restaurants located in the Netherlands from subsidiaries of Yum! Brands. At 14x trailing earnings I think Collins Foods may have fallen into the buy zone now.
The Downer EDI Limited (ASX: DOW) share price has plunged 25% to $5.52 after institutional investors snapped up only 66% of the shares available to them in an equity raising. This was despite the offer being a 20% discount to Downer's last closing price. Downer intends to use the funds to acquire struggling services company Spotless Group Holdings Ltd (ASX: SPO) for approximately $1.27 billion.
The Evolution Mining Ltd (ASX: EVN) share price has dropped almost 4% to $2.05. The miner is one of a number of shares in the gold mining industry to be sold off today as investors move away from the precious metal and back into risk assets.
The Stemcell United Ltd (ASX: SCU) share price has fallen 13% to 19.5 cents. The company's decision to switch its focus to medical marijuana in the last few weeks appears to have raised eyebrows at the ASX. Judging by its share price performance today, it would appear as though many investors were not satisfied with the answers it provided to the ASX compliance team.
