A number of ASX-listed companies have seen their share prices fall by as much as 15% today, despite a gain of 0.2% in the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO).
Are these price falls an opportunity for investors to pick up shares on the cheap, or is their more downside to come?
Here's our view of 3 of them…
Kip McGrath Education Centres Limited (ASX: KME) has seen its shares lose 15.3% to 30.5 cents in late afternoon trading, but shares are still up 15% for the week. The company provides education services for the pre-school, primary, secondary and tertiary markets and recently reported a 95.7% increase in net profit, on the back of a 30% increase in revenues. Shares shot up on the announcement, and it appears some traders are taking the opportunity to take some profits. This may be an opportunity for Foolish investors to get set in a company with strong growth ahead.
Structural Systems Limited (ASX: STS) shares are down 11.5% to 54 cents, after the mining services company came out of a trading halt. The company said it needed time to assess the impact of cost overruns on a major construction project, which has led to a net profit before tax of $2.1 million for the 2014 financial year. Banking covenants require the company to seek bank approval before paying a dividend, and there's no certainty that it will receive approval, although directors are optimistic. The issue shows what can go wrong with contracting companies, and one wonders if there are any more skeletons in the closet.
Investors have dumped Jumbo Interactive Ltd (ASX: JIN) shares, which are down 6.4% to $1.32 coming into the close. Jumbo announced a disappointing 6.6% fall in net profit to $2.8 million, which the company says is due to an 18% decrease in major prizes and jackpot activity in Australian lotteries. The company's operations in Mexico and Germany are yet to turn a profit, but could turn out to be more valuable than the Australian operations in the future. Jumbo is one to watch, but it's probably not one I'd be jumping into right now.
