Four shares that are climbing more than most today are listed below. Here's why they have raced higher:

The Afterpay Touch Group Ltd (ASX: APT) share price has climbed 3.5% to $18.21 despite there being no news out of the payments company. However, with its half year results due to be released in under two weeks, I suspect that investors may be picking up shares in anticipation of a stronger than expected result from the fast-growing company.

The Beach Energy Ltd (ASX: BPT) share price has continued its solid form and pushed 5% higher to $1.87. The energy producer's shares have been on the rise this week following a strong half year result. One broker that liked what it saw was Ord Minnett. According to its note, the broker has retained its buy rating and lifted the price target on its shares to $2.30. Its result was ahead of the broker's expectations.

The Goodman Group (ASX: GMG) share price is up over 3% to $12.39 following the release of the integrated property group's half year result. In the first half of FY 2019 the company delivered an operating profit of $465 million, up 10.4% on the prior corresponding period. In light of this strong first half, Goodman has upgraded its full year earnings per share guidance to 51.1 cents. It maintained its distribution guidance of 30 cents per share.

The Wellard Ltd (ASX: WLD) share price has rocketed 38% to 6.2 cents after the cattle exporter reported its maiden half year profit after tax. During the half the company posted a 34% increase in revenue to $188.2 million and a net profit after tax of $2.9 million. This compares to a loss of $7.4 million in the prior corresponding period. Management advised that: "Excellent vessel utilisation, profitable cattle trading from Australia to South East Asia and continued cost savings were the key drivers for the improved operational and financial results."

The post Why Afterpay, Beach, Goodman Group, & Wellard shares raced higher today appeared first on The Motley Fool Australia.

Four shares that have failed to follow the market higher today are listed below. Here's why they are ending the year with a day in the red:

The Altura Mining Ltd (ASX: AJM) share price is down over 3% to 15 cents. The majority of the lithium miners are in the red today, possibly due to profit taking following a rally in their respective share prices over the last few trading days. This decline means the Altura share price has lost two-thirds of its value in 2018.

The Galaxy Resources Limited (ASX: GXY) share price has dropped 2.5% to $2.17. As well as being caught up in the general lithium miner weakness today, this morning Galaxy provided an update on its Sal de Vida operation. The market appears disappointed that it has yet to find a strategic partner despite being in negotiations with numerous suitors.

The Wellard Ltd (ASX: WLD) share price has tumbled almost 7% to 5.5 cents after the cattle exporter announced that it has received preliminary reports that the Turkish Government has imposed a halt on the import of live feeder cattle into Turkey from all countries. Management warned that at this stage it is not possible to predict the impact it will have on the company's shipping schedule in 2019.

The Yojee Ltd (ASX: YOJ) share price has continued its slide and is down a further 3% to 6.4 cents. At one stage today the logistics software company's shares were trading at a 52-week low. Investors appear disappointed with the company's financial performance this year despite countless promising announcements over the last couple of years. In the September quarter the company reported cash receipts of just $118,000 compared to outflows of $2 million.

The post Why Altura Mining, Galaxy Resources, Wellard, and Yojee shares are sinking lower today appeared first on The Motley Fool Australia.

Three small cap shares that have produced even stronger gains than the market are listed below. Here's what made them zoom higher:

The Hydroponics Company Ltd (ASX: THC) share price is up almost 8% to 77 cents. As well as gaining a boost from investors returning to risk assets again today, this medicinal cannabis company put out a promising announcement. According to the release, the company advised that it has completed its visit to several medicinal cannabis clinics in Canada and will now take what it has learned and replicate the model in Australia. The first medicinal cannabis clinic is expected to open in the second quarter of 2018. I think this is an interesting development and could potentially give it a first-mover advantage if it is a success.

The Volpara Health Technologies Ltd (ASX: VHT) share price is up 15% to 77 cents following the release of an investor update from the digital healthcare company. According to the update, total contract value (TCV) added in January was NZ$1.2 million, up 400% on the prior corresponding period. As a result, annual recurring revenue (ARR) has increased to over NZ$3 million, from NZ$1.1m at the end of FY 2017. Management believes this puts the company well on track to exceed its 200% ARR growth target for FY 2018 and I agree. While its shares are by no means cheap, I do think Volpara is well worth a closer look.

The Wellard Ltd (ASX: WLD) share price is up 3.5% to 15 cents. This morning the agribusiness company released its half-year result which revealed a first-half net loss of $7.5 million. This loss was, however, a big improvement on the prior corresponding period when it posted a loss of $17.9 million and came despite the fact that revenue was down 42% on the first-half of FY 2017. While management doesn't expect trading conditions to improve in the second-half, it is pleased with the early success of its cost cutting program. I would stay clear of Wellard until it is consistently growing its profits.

The post These 3 small cap shares zoomed higher today appeared first on The Motley Fool Australia.

Four shares going against the grain and climbing higher today are listed below. Here's why they have posted solid gains today:

The Brambles Limited (ASX: BXB) share price is up 4% to $9.37. Today's gain appears to be related to a research note out of Credit Suisse this morning. According to the note, its analysts have upgraded the supply-chain logistics company's shares from an underperform rating to neutral. Its analysts believe that the majority of downside risk has been priced in now. Whilst this may be the case, I see far better opportunities elsewhere in the industry.

The Caltex Australia Limited (ASX: CTX) share price has climbed 3% to $32.52 following the release of its latest refiner margin update. In August Caltex enjoyed a refiner margin of US$14.99 per barrel, up from US$14.67 in July and US$8.08 a year earlier. Sales from production rose to 545 million litres during the month, compared to 481 million litres in July.

The Seven Group Holdings Ltd (ASX: SVW) share price has jumped almost 9% to $12.15 after announcing the acquisition of Coates Hire. Seven has bought the remaining 53.3% interest it did not own for $517 million. Management expects the acquisition to be 15% accretive to FY 2017's underlying earnings per share. The deal appears to be a good one and I'm not surprised to see its shares higher today.

The Wellard Ltd (ASX: WLD) share price has climbed higher for a second day in a row, this time by 14% to 16.5 cents. Investors have been snapping up shares after management announced an historic first shipment of cattle to China. Although it was a reasonably small shipment, management remains confident that this is the start of more regular shipments.

The post Why these 4 ASX shares have posted solid gains today appeared first on The Motley Fool Australia.

The agribusiness company's shares finished the day 16% higher at 14.5 cents.

Why did its shares jump higher?

This morning Wellard announced that it has agreed commercial terms for its historic first shipment of beef cattle to China.

Approximately 2,000 cattle will be loaded for the shipment from south east Australia and supplied to Rongcheng HCMH Trade and Service Company.

Although this is a relatively small shipment, it is the largest of its type to date and is a big step forward for the company.

Management believes that China offers significant potential for Wellard and remains confident that this first shipment will pave the way for the development of a more regular trade.

This news will no doubt be a welcome relief for shareholders, year-to-date Wellard's shares are down 33%.

The post Why the Wellard Ltd share price jumped 16% higher today appeared first on The Motley Fool Australia.

Four shares which haven't let that hold them back are listed below. Here's why they are climbing higher today:

The Galaxy Resources Limited (ASX: GXY) share price is up 4% to $2.78 despite there being no news out of the lithium miner. But with lithium demand expected to grow strongly over the next two decades, investors appear to see a lot of long-term potential in the company. I think Galaxy is one of the best shares in the resources sector at present.

The New Hope Corporation Limited (ASX: NHC) share price is up almost 3% to $1.83 following the release of its full-year results. The coal miner posted net profit after tax and non-regular items of $140.6 million, up 362% on the previous year. Looking ahead, management believes New Hope is in a strong position to service the growing needs of electricity producers in expanding Asian markets.

The TPG Telecom Ltd (ASX: TPM) share price has jumped 6.5% to $5.56 following the release of its full-year results. The telco company delivered EBITDA of $835 million, $5 million ahead of the top-end of its guidance range of $820 million to $830 million. Investors appear pleased with this and optimistic on its mobile plans. So much so they have looked beyond weak FY 2018 guidance and a sizeable cut to its dividend.

The Wellard Ltd (ASX: WLD) share price is up 8% to 13.5 cents after the agribusiness company announced the first shipment of beef cattle to China. According to the release, approximately 2,000 cattle will be loaded for the shipment from south east Australia for Rongcheng HCMH Trade and Service.

The post Why these 4 ASX shares have stormed higher today appeared first on The Motley Fool Australia.

Four shares which haven't been able to follow the market higher today are listed below. Here's why they have sunk into the red:

The Admedus Ltd (ASX: AHZ) share price is down 5.5% to 25.5 cents. This now brings its two-day decline to in excess of 10.5% and comes following the release of its quarterly update yesterday. The market appears to have been disappointed that the healthcare company reported fourth-quarter revenue growth of 28% on the prior corresponding period. Whilst this is undoubtedly strong, it is slower growth than the company experienced in previous quarters.

The BlueScope Steel Limited (ASX: BSL) share price has fallen 3% to $13.31 despite there being no news out of the steel producer. But with its shares up 43% this year, I wouldn't be surprised if this was the result of profit taking. Whilst I think its shares are reasonably expensive still, if they came down a little lower they could be worth a closer look.

The Wellard Ltd (ASX: WLD) share price has continued to tumble lower, this time by 3.5% to 13 cents. Due partly to a sharp decline last week following the release of a terrible trading update, the cattle exporter's shares have now fallen over 70% in the last 12 months. As cheap as they look, I would avoid its shares at all costs.

The Yowie Group Ltd (ASX: YOW) share price has plunged 10% to another multi-year low of 23 cents. The confectionery company's shares have now lost 27% of their value since the release of its latest quarterly result. Although Yowie delivered revenue growth of 23% in the fourth-quarter, it fell short of the 37% growth guidance given on June 21 when there were only nine days remaining in the quarter. Ultimately this led to the company missing its full-year guidance, which it had downgraded no less than three times throughout the year. This is another company I would suggest investors avoid.

The post Why these 4 ASX shares sank into the red today appeared first on The Motley Fool Australia.

Four shares which have managed to defy the market and start the week with solid gains are listed below. Here's why they are higher:

The Iluka Resources Limited (ASX: ILU) share price is up 3% to $9.26 following the release of a positive quarterly update. According to the release, Iluka delivered a 36% year-on-year increase in production during the quarter. This led to a 48.8% lift in quarterly mineral sands revenue. Its shares are now up an impressive 27% year-to-date.

The Rhipe Ltd (ASX: RHP) share price has rocketed almost 18% to 66 cents after the subscription software wholesaler advised that a strong second-half means it expects to meet its $4 million reported EBITDA target for FY 2017. Furthermore, the company expects to finish the year with a cash balance of $19.8 million, ahead of expectations.

The Somnomed Limited (ASX: SOM) share price has jumped 7% to $3.05 after the sleep treatment company released its fourth-quarter update. A strong final quarter in the United States led to SomnoMed delivering unaudited quarterly group revenues of $49.3million for the year. This is a 12% increase on FY 2016. If the company can carry this momentum over to FY 2018, I think it could be worth considering as an investment.

The Wellard Ltd (ASX: WLD) share price has climbed 4% to 13.5 cents, despite there being no news out of cattle exporter. But with its shares falling 27% in the last five trading sessions, I think today's gain is likely to be attributable to bargain hunters swooping in. Whilst its shares do look dirt cheap, I would suggest investors give the company a wide berth until its performance improves.

The post Why these 4 ASX shares have started the week with solid gains appeared first on The Motley Fool Australia.

In afternoon trade the cattle exporter's shares are down 16% to 12.2 cents. This means its shares have lost over 30% of their value this week and 44% since the start of the year.

What happened?

Yesterday Wellard advised that it expects to post a full-year loss before tax of between $55 million and $65 million, excluding impairments on vessels.

This is largely the result of a reduction in demand from South East Asian markets due to sustained high cattle prices in Australia.

This loss is likely to have a very negative impact on its ongoing business, especially with the company being in breach of various banking facilities. Management is working with its banks on the provision of waivers.

The post The Wellard Ltd share price has fallen over 30% this week appeared first on The Motley Fool Australia.

Here's a quick recap:

• S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) up 0.8% to 5732 points
• ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) up 0.7% to 5779 points
• AUD/USD at US 79.31 cents
• Iron Ore at US$68.84 a tonne, according to the Metal Bulletin
• Gold at US$1,239.34 an ounce
• Brent oil at US$48.64 a barrel

The BHP Billiton Limited (ASX: BHP) share price slipped 1.1% today after the company delivered an operational review for the year ended 30 June 2017. Although its iron ore production levels rose 4%, its petroleum production slipped 13%.

The Rio Tinto Limited (ASX: RIO) share price also slipped 0.7%, while the Fortescue Metals Group Limited (ASX: FMG) share price rose 0.4%.

Elsewhere in the resources space, the gold miners once again struggled to gain traction. The St Barbara Ltd (ASX: SBM) share price was one of the worst performers on the ASX 200, losing 6%. The Northern Star Resources Ltd (ASX: NST) share price dropped 3.8%.

The major banks produced very strong gains today. In addition to ANZ's rise, the Commonwealth Bank of Australia (ASX: CBA) share price gained 3%, the National Australia Bank Ltd. (ASX: NAB) share price rose 3.1%, and the Westpac Banking Corp (ASX: WBC) share price lifted 3.8%.

Meanwhile, the Cimic Group Ltd (ASX: CIM) share price rose 5.8%, while Wellard Ltd (ASX: WLD) dropped 13.8%.

Here are Wednesday top stories:

1. What APRA's reforms means for your big bank shareholdings
2. Why Telstra Corporation Ltd could be about to slash its dividends

The post 11 shares you should have been watching on Wednesday appeared first on The Motley Fool Australia.

Unfortunately not all shares have been able to climb higher today. Here's why these four shares have sunk lower:

The Catapult Group International Ltd (ASX: CAT) share price has fallen 5% to $2.00 despite there being no news out of the sports analytics company. As a significant portion of its cash receipts are generated in the United States, investors may be concerned about the impact that recent unfavourable currency movements may have on its profits.

The Nextdc Ltd (ASX: NXT) share price has fallen almost 4% to $4.30 after revealing that it has acquired a 14% stake in Asia Pacific Data Centre Group (ASX: AJD). The investment appears to have been made in order to prevent major shareholder 360 Capital from making changes in the boardroom. NextDC is a long-term tenant of AJD and may be concerned that a change could result in unfavourable leasing terms when it comes to renewal.

The St Barbara Ltd (ASX: SBM) share price has fallen 8% to $2.46. Although the vast majority of Australia's leading gold miners have sunk lower today, St Barbara has fallen significantly more than most. This latest drop means its shares have now fallen 12% in the last five trading sessions, compared to a 3.5% decline by the gold miners' index.

The Wellard Ltd (ASX: WLD) share price has continued to sink lower, this time by 17% to 12 cents. Investors have been heading to the exits in their droves following yesterday's full-year update. According to yesterday's release, Wellard expect to report a full-year loss before tax of between $55 million and $65 million, excluding impairments on vessels. With a result of that nature it isn't hard to see why its shares are down 35% this week.

The post Why these 4 ASX shares sank lower today appeared first on The Motley Fool Australia.

Four shares which have fallen more than most today are listed below. Here's why they have sunk lower:

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is down 2.5% to $11.18 despite there being no news out of the regional bank. This latest decline means that Bendigo and Adelaide Bank's shares have now lost 12% of their value since the start of the year. This could make them worth another look in my opinion.

The Independence Group NL (ASX: IGO) share price has tumbled 3% to $3.21 despite the majority of Australia's leading gold miners climbing higher today. Today's decline means that Independence's year-to-date decline has stretched to 25%. Investors have been heading to the exits due to production delays at its Nova project. Despite how cheap it looks now, I would suggest investors stay clear of the miner.

The Galaxy Resources Limited (ASX: GXY) share price is down 2.5% to $1.80. Investors appear to have been disappointed with the lithium miner's cash costs during the last quarter. However, leading broker Citi doesn't appear concerned and expects them to improve. The broker reiterated its buy rating and $2.70 price target this morning.

The Wellard Ltd (ASX: WLD) share price has plunged 20% to 15.5 cents following the release of a market update. According to the release, the cattle exporter expects that trading losses in the second-half will be significantly higher than the $16 million loss it reported in the first-half of FY 2017. The company has blamed the loss on a reduction in demand from South East Asian markets due to sustained high cattle prices in Australia.

The post Why these 4 ASX shares have sunk lower today appeared first on The Motley Fool Australia.

Here's a quick recap:

• FTSE 100 (UK): up 0.35%
• DAX (Germany): down 0.35%
• CAC 40 (France): down 0.1%
• Dow Jones (USA): down 0.04%
• NASDAQ (USA): up 0.03%

Wellard Ltd (ASX: WLD) will likely come under some pressure today. The group announced this morning that it expects its trading losses for the second half to be 'significantly higher' than the $16 million loss reported during the first half.

Cimic Group Ltd (ASX: CIM), on the other hand, announced a solid performance for the six months ended 30 June 2017, including a significant increase in net profit and cash flows. Revenue grew 28% year-on-year while its net profit of $323 million was up 22% year-on-year.

Conditions could be mixed in the resources space. On the one hand, gold and iron ore rose 0.5% and 1.6% respectively, which could help to support shares such as Fortescue Metals Group Limited (ASX: FMG) and Northern Star Resources Ltd (ASX: NST).

But oil prices were down 1%, which could also drag on energy producers such as BHP Billiton Limited (ASX: BHP) and Santos Ltd (ASX: STO).

Finally, Rio Tinto Limited (ASX: RIO) reported its second-quarter production results. Pilbara iron ore shipments and production were both higher than the prior quarter, but down 6% and 1% respectively from the year-ago period.

Before getting started on your day, be sure to check out these two articles:

1. Top broker picks 6 stocks to own as interest rate rises
2. Bellamy's Australia Ltd just shocked the market again

The post 7 shares you need to watch on Tuesday appeared first on The Motley Fool Australia.

Brambles Limited (ASX: BXB)

Brambles has had a tough year, with shares diving 20% following a first quarter downgrade and weak first half. While sales have picked up somewhat in the 3^rd quarter, the business remains under pressure from competition. Additionally, management recently withdrew their target of 20% Returns on Capital Invested (ROCI) by 2019, seemingly satisfied with today's levels of ~15.9% (or 14.8%, under their previous methodology). This suggests that the business itself is not capable of generating higher returns on its existing assets, and will only grow via expansion.

There is a price at which I'd buy Brambles shares, but $9.94 is not it.

Quintis Ltd (ASX: QIN)

Shares in sandalwood grower-turned pharmaceutical company Quintis, formerly TFS Corporation, have dived this year after short seller Glaucus Capital asserted that the company was a Ponzi-like scheme. The seriousness of these allegations was accentuated by the subsequent sudden departure of the managing director, Frank Wilson, who 'received an offer to potentially partner with an unnamed international corporation to present a proposed change of control transaction to the Company board.'

Foolish readers have seen this before with Surfstitch Group Ltd (ASX: SRF). Different company, different situation, but Mr Wilson's departure is still a big red flag in my opinion. It is also important to remember that Glaucus stands to profit from a decline in Quintis' shares, so they are incentivised to spook shareholders. Either way I would not feel comfortable touching this one without serious investigation.

Wellard Ltd (ASX: WLD)

Wellard is a live animal exporter and meat processing company that has been smashed by high cattle prices and restructuring, resulting in ballooning debt and weak cash flow. Management recently announced a $52 million capital raising, fortunately with shares to institutions issued at $0.24 each, above recent market prices. This will dilute existing owners significantly, given the company has a market capitalisation of $100 million or so at present. I think there is an opportunity to find value in Wellard, which had net tangible assets of $0.42 per share as at 31 December 2016 (pre- capital raising) and could prove very cheap if it is able to return to profitability and sustainable cash generation.

However, the company's net debt of $188 million is very high and the recent capital raising diluted the value of each share significantly, making them less valuable if the company returns to profitability. I'm interested, but think it is probably too risky for me.

The post 3 beaten-up shares I'm avoiding at today's prices appeared first on The Motley Fool Australia.

But if the ASX's recently listed companies are anything to go by it may as well stand for Insanely Poor Opportunities.

Disaster IPO

Here are some of the recent IPOs to hit the market in terrible fashion:

• Wellard Ltd (ASX: WLD)
• Dick Smith Holdings Ltd (ASX: DSH)
• McAleese Ltd (ASX: MCS)
• Vocation Ltd (ASX: VET)

Each company has had its share price hammered, or gone out of business altogether. Dick Smith was probably the most notable, given it was a retail facing business and its founder was an Australian icon.

It was also a disaster story for investors, like mum and dad's, and their advisors. The company seemingly blindsided investors with working capital (that's finance speak for 'we stuffed up our cash flow budget') and inventory issues.

But what really happened was investors were caught out by an informed seller. They took a perfectly healthy — but poorly performing — business, squeezed it for inventory and assets and propped up the profits before selling it to the market. Sure, it had a fighting chance, but only enough to meet some expectations.

The informed seller walked away with hundreds of millions of dollars.

1 reason most IPOs suck

The people (investment bankers) who conduct IPOs aren't silly. They are some of the best analysts that walk this planet. That's why most of them are paid $500k per year, plus bonuses. They know their accounting tricks, and most have experienced the emotional tops and bottoms of markets many times. They prop up company financials for a good time — not a long time — to get a good price and take home their six or seven figure bonus.

Fundamentally, they have a better chance of knowing what a company is worth than you, your advisor and your analyst.

They are privy to all the financial information and have endless access to management on road shows. In fact, there's even a chance some of the bankers helped recruit and select the CEOs for the IPO spotlight.

Ultimately, they know more than you, a public company shareholder who receives two reports a year. Of course, if you sat down for a few hours or days (depending on how good of an analyst you are) and combed the Dick Smith financials, you could have avoided the despair.

However, you could have avoided the Dick Smith disaster altogether by simply refusing to buy into IPOs. 

Basically, if you take part in an IPO, you are buying from an informed seller whereas on the market it could be anyone — informed or otherwise. Do you think an informed seller would let you in on such a good opportunity or keep it for himself?

Foolish Takeaway

In my opinion, most IPOs are duds. And for the 5% or less that aren't, they are so tightly held that the big institutional investors will crowd out your opportunity to buy.

In any case, so much of the time, it is like picking up a penny in front of a steamroller.

Warren Buffett, the world's best investor and third richest person, was taught by Ben 'The Father of Value Investing' Graham. Graham believed an investor could use IPOs as a yardstick for investors' emotion and, perhaps, when the market would likely fall. The further we go into a bull market, the more crap IPOs people are willing to buy.

I would go one step further than Graham and just avoid them altogether. If they are good businesses, they will still be around in one, two or even 10 years.

The post 1 reason most IPOs suck appeared first on The Motley Fool Australia.

That's the view of Allan Gray managing director Simon Mawhinney after the fund manager analysed all IPOs over the last decade with market caps greater than $2 million. 7 of the worst ten performing companies in 2016 were businesses that listed in the past three years.

A number even failed to pass their three-year anniversary, including electronics retailer Dick Smith Holdings, training provider Vocational Education and trucking company McAleese.

Mr Mawhinney says IPO companies tend to outperform the market in their first year, but performance tails off after that as the years pass. "They are priced for perfection. Most newly listed companies come to market when either economic times or just stock markets, in general, are incredibly buoyant and are more receptive to new listings," he has told Fairfax Media.

That's not always the case of course, with several IPOs tanking in their first 12 (or so) months. Wellard Ltd (ASX: WLD) – a livestock marketing, export and transportation company has lost 85% of its value since the start of 2016. It listed in December 2015.

There are plenty of examples of IPOs from within the past three years that have tumbled, but remain listed.

Building company Simonds Group Ltd (ASX: SIO) listed in late 2014 with an issue price of $1.78 and had seen its share price sink to just 38 cents. It was one of the worst-performing shares in the 2016 financial year. The company now appears to be looking to delist from the ASX.

Surfstitch Group Ltd (ASX: SRF) issued shares in its December 2014 IPO at $1.00 each. After soaring to a high of $2.13 in November 2015, the share price has crashed to as low as 10 cents. Shares currently trade at 19.5 cents.

It remains to be seen whether the above-mentioned companies can turn around their share price performance in the years ahead, but it's another warning to investors looking for those 'stag profits' in IPOs. Performance over the longer term counts more, and IPOs are not the best way to play that.

Foolish takeaway

No wonder the world's greatest investor, Warren Buffett, is not a big fan of investing in IPOs and recommends investors avoid them. Investors should remember his words, "It's almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractively priced is the one being sold by a knowledgeable seller (company insiders) to a less-knowledgeable buyer (investors)."

The post Why IPOs have not been great investments appeared first on The Motley Fool Australia.

Unsurprisingly, a number of very popular shares have been hit pretty hard over the course of the year as they failed to live up to market expectations.

Since I highlighted some of the best performing shares yesterday, I thought it would only be fair to highlight some of 2016's biggest losers today.

Here they are:

While this is a pretty sorry looking list of shares, it does highlight the importance of diversification when it comes to investing in the share market.

Although it is nearly impossible to avoid owning one or two losers each year, a well diversified portfolio will ultimately help you to limit your downside risk should a particular share lose 30%, 40% or 50% — sometimes in a single day.

In any case, shareholders who own any of those shares today must ask themselves if the shares are likely to make a meaningful recovery or are there better options elsewhere?

Personally, I wouldn't be rushing out to buy any of those shares right now as there does not appear to be an easy path to recovery for any of them.

With that said, Sirtex Medical, Mobile Embrace and Touchcorp remain good candidates as 'turnaround plays' and I would happily keep them on my list of shares to watch in 2017.

The post 15 shares you should have avoided in 2016 appeared first on The Motley Fool Australia.

But four shares which have been going against the grain and putting strong gains on for their respective shareholders are as follows:

Atlas Iron Limited (ASX: AGO) shares have jumped 13% to 2.5 cents following yet another rise in the iron ore price. Overnight iron ore rose 7% to an 18-month high of US$79 a tonne according to The Metal Bulletin. Although President-elect Donald Trump's infrastructure plans could drive long-term demand for iron ore nothing is set in stone at this stage. The price of iron ore could face a sharp and sudden decline in the next few months.

Central Petroleum Limited (ASX: CTP) shares have rocketed higher by 33% to 18 cents after it emerged that the oil and gas company had received a takeover approach from shareholder and principal financier Macquarie Group Ltd (ASX: MQG). The offer of 17.5 cents per share was deemed not to be in the best interest of shareholders by Central's directors.

Mesoblast limited (ASX: MSB) shares are up almost 5% to $1.23 following a positive update regarding the trial of its drug to treat acute versus graft host disease in children. As positive as the update might sound, the regenerative medicine company's cash burn certainly doesn't appear to make it investable at this stage.

Wellard Ltd (ASX: WLD) shares are higher by 9% to 24 cents despite there being no news out of the agribusiness company. Last week it was revealed that the company and major shareholder Butt Nominees had locked horns over its share price performance, director remuneration, and board representation. The two parties won't have long to wait until they come face to face, with the company's AGM scheduled for November 29.

The post Why these 4 ASX shares are skyrocketing today appeared first on The Motley Fool Australia.

The latest announcement by the company was made last Thursday and it seems unlikely that it caused today's spike. The subject of that release was an ongoing dispute between two major shareholders over director remuneration and board representation.

Despite today's rise, Wellard's shares are still down over 80% since the company listed in December last year. No wonder shareholders are squabbling!

Upon listing, Wellard forecast pro forma net profit after tax (NPAT) of $46.4 million in 2016, but the actual result was $14.8 million which explains the share's plunge over the past year. The reasons given by management for this underperformance are twofold.

1. Operational issues caused by two vessel breakdowns.
2. High cattle prices in Australia combined with the inability to pass them onto customers causing margin compression.

Perhaps the greatest concern for investors is the company's worsening debt position which stood at $171.6 million after cash at 30 June 2016. Notably, most of the $290 million raised in the IPO was used to repay existing shareholders.

Wellard is essentially a trader in livestock, sourcing it from places where there is an oversupply and selling it in countries where demand exceeds local production. Like listed cattle farmer Australian Agriculture Company Ltd (ASX: AAC), Wellard hopes to benefit from growing Asian demand for protein rich foods.

But as the company's recent travails demonstrate, favourable long-term demand trends are just a small factor in successfully running an agribusiness.

In my view Wellard is a capital-intensive business subject to fluctuating commodity prices with a track record of execution that is far from perfect. It will be interesting to see if any news emerges to explain today's price action.

The post Why Wellard Ltd's share price popped today appeared first on The Motley Fool Australia.

Four shares which have been going against the grain today and posting particularly strong declines are as follows:

Blackmores Limited (ASX: BKL) shares are down close to 4.5% to $118.76 despite no news out of the health products company. Its shares have been bouncing all over the place in recent weeks, with traders rather than investors appearing to have control. Although there are concerns over a slowdown in the first quarter, I feel this has been baked into the current share price. For that reason I would consider Blackmores a buy if you can handle a touch of volatility.

Saracen Mineral Holdings Limited (ASX: SAR) shares have dropped over 4% to $1.36. Most of Australia's leading gold producers have dropped lower today even though the spot gold price has remained relatively stable at US$1,316 an ounce. Investors could be exiting their positions ahead of the Federal Reserve's interest rate decision in a couple of days.

TPG Telecom Ltd (ASX: TPM) shares have plunged a massive 21.5% to $9.28 following the release of the telecommunication giant's full year results. Higher capital expenditures and lower-than-expected growth forecasts appear to have spooked the market. Personally I would see this sell off as a buying opportunity. At the current price I believe TPG Telecom represents a great buy and hold investment.

Wellard Ltd (ASX: WLD) shares were one of the big gainers yesterday, but today it is a very different story and its shares are lower by over 10% to 26 cents. Yesterday the agribusiness company's shares rocketed higher by 24% to 29 cents following an announcement that its CEO Mauro Balzarini had sold close to half of his shares to Chinese company Fulida in order to refinance his privately owned company. Today's decline could be a result of profit taking from some investors.

The post Here's why these 4 shares got crushed today appeared first on The Motley Fool Australia.