The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a reasonably uninspiring day so far, trading mostly flat at 5,910 points.
Four shares which have performed far worse are listed below. Here’s why they have sunk like stones today:
The Dorsavi Ltd (ASX: DVL) share price has fallen 9% to 38.5 cents following the release of its quarterly results. The update revealed a slowdown in sales growth during the third quarter of FY 2017. Sales grew just 4% during the quarter compared to the prior corresponding period, slowing its year-to-date sales growth to 23%.
The Santos Ltd (ASX: STO) share price has tumbled 6.5% to $3.41 after the government announced plans to crack down on high domestic gas prices. The government aims to reduce domestic prices by half, blocking the export of gas if necessary. Considering the company’s high debt burden, I would stay clear of its shares despite today’s drop.
The Somnomed Limited (ASX: SOM) share price has continued to slide lower, this time by almost 9% to $2.94. A disappointing quarterly update has been the catalyst for the sell-off in the sleep treatment company’s shares. Weaker-than-expected sales in the United States led the company to downgrade its full-year earnings guidance.
The Ten Network Holdings Limited (ASX: TEN) share price has plunged 16% to 37.5 cents after the media company released its half-year report. The report revealed a 2.5% fall in revenue and a net loss of $232 million for the period. While a significant portion of the loss was a non-cash impairment charge, its performance is still extremely worrying in my opinion. I would suggest investors avoid Ten.
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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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