The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed 0.5% lower, with miners and energy stocks heavily sold off. The materials sector fell by 1.7%, while energy dropped 1.3%.
But these four stocks were obviously heavily out of favour with investors…
NRW Holdings Limited (ASX: NWH) slumped 17.2% to close at 48 cents, and has lost 60% in the past year. The supplier of mining equipment, contracting and civil services, today reported that earnings in the 2015 financial year will be "materially lower" than the previous year, and heavily dependent on the successful outcome of a number of contract negotiations. That doesn't sound all that positive, and investors may need to brace for more bad news.
Monadelphous Group Ltd (ASX: MND) crashed down 9.3% to close at $9.61, after earlier hitting its lowest price in more than five years. As we wrote yesterday, mining investment is being heavily scaled back, and we have yet to hit the worst of it. Miners and energy producers are not only cutting back on new work, but it seems existing contracts are being renegotiated at lower margins. With little work around, mining services companies have to take what they can get, while their customers hold the upper hand.
Donaco International Ltd (ASX: DNA) dropped 14.5% to 59 cents. Shares in the casino operator have now dropped 36% in the past month. At the company's AGM today, Donaco reported that September revenues were well below expectations, affected by China/Vietnam relations, the Soccer World Cup and an earthquake in China's Yunnan province. However, these may be short term factors, with expectations Vietnamese may be allowed to enter the casino shortly, and a lifting of a travel warning to Vietnam by China.
Acrux Limited (ASX: ACR) fell 9.3% to $1.22, despite the biotech stock announcing yesterday that the European Medicines Agency (EMA) had released a statement titled "No consistent evidence of an increased risk of heart problems with testosterone medicines." Acrux manufactures and sells a range of products, including testosterone treatment Axiron. The company will be hoping the US FDA takes note of the EMA statement, given the US health regulator is looking into testosterone treatments.
