3 stocks that got clobbered by the market today

It's not just resources stocks getting hammered

Mike King

Mike King is a Fool.com.au Investment Analyst and Writer. He caught the investing bug more than a decade ago, at a time when the U.S. had invaded Iraq and fear reigned in the markets. His initial success as the markets took off encouraged his passion and thirst for knowledge. With 13 years behind him at one of Australia's largest domestic banks, Mike's passion for stocks led him to join a boutique funds management firm, where he stayed for four years. A seven-year stint in equity research at one of the largest investment banks in the world followed that, giving Mike a thirst to pursue his passion further. Mike holds a Diploma in Applied Finance and Investment and a Graduate Certificate in Financial Planning. His passion is to help retail investors invest better, and that passion was one of his primary reasons for joining The Motley Fool Australia in late 2011. Mike has written thousands of articles since joining, including for Fairfax Media, Yahoo!7, Ninemsn and has also appeared on ABC's The Business. You can see all of Mikes' holdings here

Published August 29, 2012 6:08 pm AEST

The S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO) has closed flat, falling just 3 points to 4,356.4 as investors likely wait for US Federal Reserve chairman Ben Bernanke's speech to international central bankers in Jackson Hole on Friday. Resources stocks were hammered today, as the iron ore price continues to trade under US$100 a tonne. Iron ore is currently trading at less than US$95 a tonne.

These three stocks fell by more than 8%.

Vision Eye Institute (ASX: VEI) saw its shares slump by 11.1% to end at 56 cents, despite the company reported a full year profit of $8.9 million on revenues of $111 million. Operating cash flow was very healthy at $26.6 million. Investors appear concerned that former health minister Michael Wooldridge, a director on the Vision board, faces a ban from corporate life over allegations that he breached his duties as a director, while chairman of Australian Property Custodian Holdings.

Sundance Resources (ASX: SDL) shares lost 9.7% to 32.5 cents, more than reversing yesterday's 7.4% rise, despite accepting a revised 45 cents per share bid from China's Hanlong Mining. Hanlong had previously offered 57 cents per share, but was told by Chinese authorities that it would only receive approval if it achieved a 'reasonable' acquisition price. With iron ore prices continuing to fall, investors likely fear the bid may be revised down again.

Ramelius Resources (ASX: RMS) shares slipped 8.3% to 44.5 cents, continuing yesterday's falls after the company reported a 96% collapse in full year profit. Revenues have declined as the company's Wattle Dam mine nears the end of its life, and gold has petered out. Luckily for the company it is ramping up production at its Mt Magnet operation, and has other prospective ventures. In the short-term, production is likely to be erratic, which could affect revenues and have a bearing on the share price.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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