It has been a disappointing end to the week for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the index is down 1.3% to 5,711 points.
Four shares which have fallen significantly more than average today are listed below. Here’s why they are ending the week deep in the red:
The Ellex Medical Lasers Limited (ASX: ELX) share price is down 5% to $1.02 following the release of a trading update. According to the release, the medical device company expects to post a loss before tax of $2 million in FY 2017. This has been blamed on a stronger Australian dollar and investment in its iTrack device.
The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen almost 4% to 95.2 cents. Whilst I think the pharmaceutical company’s shares are arguably dirt cheap right now, until the Trump Administration has finalised its plans on generic drug prices, I would suggest investors stay clear of the company’s shares.
The OceanaGold Corporation (ASX: OGC) share price is down 6.5% to $3.34 following the release of its second-quarter update. The market appears to have been left underwhelmed by management’s full-year production guidance of between 550,000 and 600,000 ounces of gold. Whilst its shares are cheaper now, I still feel there is better value for money elsewhere in the sector.
The Webjet Limited (ASX: WEB) share price has fallen 7% to $11.80 after the online travel agent advised that its auditor BDO Audit disagreed with a technical accounting matter relating to its financial statements for the year ending 30 June 2017. If BDO’s methodology were applied to its full-year results, it would reduce EBITDA by $11.5 million. Today’s decline could potentially be a buying opportunity in my opinion.
As well as Webjet, I think these growth shares could have fallen into the buy zone today.
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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.