With the bull market in full swing, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) gained 1.2% to close at 5,777.3.
It was the tenth straight day of gains, with around $145 billion added to the market's value, according to The Age. Yesterday's rate cut by the RBA and the prospect of even lower interest rates ahead have investors salivating.
But somebody forgot to tell shareholders in these four companies, which were heavily sold off…
Education provider Navitas Limited (ASX: NVT) dropped 7.4% to $4.40, adding to its 9.5% fall yesterday. The company reported a 13% fall in net profit yesterday but says it still on track to soundly beat 2014 financial year earnings. Either investors don't believe the company or suspect more bad news is on the way.
Amcom Telecommunications Ltd (ASX: AMM) fell 5.5% to $2.75 while suitor Vocus Communications Limited (ASX: VOC) was down 2.9% at $6.12. The two telecommunications companies are in the process of merging, with Amcom shareholders expected to receive 0.4614 Vocus shares for each Amcom share they hold. That implies Amcom shares are worth around $2.82, before dividends. Vocus announced a joint venture today with Spark New Zealand, divesting its construction division into the JV.
Adventure wear retailer Kathmandu Holdings Ltd (ASX: KMD) continues to sink, losing another 4.4% today to end at $1.315. Shares have dropped 29% in the past week, after the company flagged a first half loss of between NZ$1 and NZ$2 million, compared to a profit of NZ$11.4 million last financial year. Weak consumer confidence and warmer weather appear to be significant headwinds, and so far there's no sign of either letting up.
Nufarm Limited (ASX: NUF) lost 4% to close at $5.77 after the company announced that long-serving managing director and CEO Doug Rathbone had stepped down. Mr Rathbone had been with Nufarm for 41 years, including 15 years as CEO. The insecticide and seed company also announced today that it was preparing to slash $100 million in costs, and a separate program to aggressively reduce working capital.
