The S&P/ASX 200 index has followed the lead of U.S. markets and is on course to start the week on a very disappointing note. In afternoon trade the benchmark index is down a sizeable 2.3% to 6,972.1 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The Ardent Leisure Group Ltd (ASX: ALG) share price has crashed 21% lower to $1.11. Investors have been selling the entertainment company’s shares following the release of the Dreamworld inquest. According to the ABC, the inquest found the design and construction of Dreamworld’s Thunder River Rapids ride posed a “significant risk” to customer safety. It also found the park’s systems were “frighteningly unsophisticated”.
The Audinate Group Ltd (ASX: AD8) share price has sunk 15% lower to $6.46 following the release of its first half results. Investors appear disappointed by a slowdown in Audinate’s revenue growth during the first half of FY 2020. Due to tariffs and delays in launches, the leading audio-visual networking technologies provider delivered a 7.7% increase in revenue to US$11.1 million. It also warned that macro-economic conditions, US tariffs, and the coronavirus outbreak could impact its second half results.
The NIB Holdings Limited (ASX: NHF) share price is down over 8% to $4.89. This morning the private health insurer reported a 6.4% increase in first half group underlying revenue to $1.3 billion but a 27.2% decline in underlying operating profit to $83.2 million. The company’s profits were impacted by higher claims inflation across its insurance businesses and the timing in the receipt and payment of claims that impacted its unpaid claims reserves.
The Reliance Worldwide Corporation Ltd (ASX: RWC) share price has crashed 26% lower to $3.42 following the release of plumbing parts company’s half year results release. Although Reliance Worldwide posted a 5% increase in net sales to $569 million, its adjusted NPAT fell heavily over the prior corresponding period. Adjusted NPAT fell 21% to $63.7 million. This led to management downgrading its full year guidance.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO. The Motley Fool Australia has recommended NIB Holdings Limited and Reliance Worldwide Limited. 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 Scott Phillips.