The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has closed the week with a rise of 1.6%, not quite as well as US markets though. Overnight, the Dow Jones, S&P 500 and NASDAQ all posted gains of 1.8%.
It was the second consecutive day of decent gains, but some stocks were still left in the shade. Here's our view on 4 stocks abandoned by investors today.
Altium Limited (ASX: ALU) fell 8.1% to close at $3.07, after the software developer gave an update on the second quarter and half year revenues and sales. Revenues climbed 17% to US$20.3 million for the quarter, with chief financial officer Richard Leon noting that it was in line with expectations. But it seems comments that the company faces some headwinds in the second half was enough to scare off some investors.
Thorn Group Ltd (ASX: TGA) dropped 4.4% to close at $2.84. The company, better known for its Radio Rentals business, has seen its shares climb more than 30% in the past 12 months and appears on track for another good year. In November, Thorn announced a 14% increase in first half profit, as we discussed in this article. At current prices, the company is paying a fully franked dividend yield of around 4% and trading on an undemanding P/E ratio of 14.3x for 2015. It still looks a good buy to me.
Atlas Iron Limited (ASX: ARI) fell 3.6% to 26.5 cents, as did a number of smaller iron ore miners, Arrium Limited (ASX: ARI) and BC Iron Limited (ASX: BCI), which lost 1.7% and 1.4% respectively. That's despite iron ore prices rising 0.6% overnight to US$71.36 per tonne. Perhaps a major factor is that at these prices, no-one really knows if the miners are breaking even, or losing money.
Neuren Pharmaceuticals Ltd (ASX: NEU) lost 8.8% to 15.5 cents, as it continues its topsy-turvy week. Shares in the biotech stock rose more than 10% on Wednesday this week, and despite today's fall, has still posted gains of near 17% for the last five trading days. Volatility is likely to continue, until the company finds out whether the US Food and Drug Administration (FDA) will give approval for Neuren's NNZ-2566 treatment – used to treat a rare condition, Rett Syndrome.
