With the All Ordinaries (INDEXASX: XAO) (ASX: XAO) down 0.7%, there were plenty of companies sold off by investors today.
Here are six that fared the worst.
Tap Oil Limited (ASX: TAP) fell 12.5% to 24.5 cents, as the company reported that it was having a disagreement over its staged acquisition payments in an oil concession. The company, Northern Gulf, is now demanding payment of US$14.6 million, which Tap is disputing. What's worse is that Northern Gulf has also failed to pay Tap amounts owing due to production from the oil concession. Sounds like Tap is losing some control of its investments in the Manora oil field offshore Thailand.
GUD Holdings Limited (ASX: GUD) lost 10.3% to close at $7.91. The maker of Sunbeam consumer appliances, Davey water-related products and Oates cleaning products recently presented to investors, highlighting 3 poorly performing businesses, Sunbeam, Davey and Dexion. The problem is that those three operations bring in nearly 70% of the company's revenue. Until GUD can turn things around, the share price looks expensive – even after today's fall.
RCR Tomlinson Limited (ASX: RCR) dropped 10% to $1.62. The construction and engineering company hasn't released any news to the market for some time now, so we might assume that the turmoil surrounding the iron ore miners and the effect it is having on mining services stocks has finally caught up with RCR. The company generates 28% of revenues from its resources division but has been falling.
Gold miner Silver Lake Resources Limited (ASX: SLR) closed down 8.1% at 17 cents. Gold was down slightly overnight to US$1,192.89 an ounce, so it seems like a bit of an overreaction if traders exited Silver Lake because of that. Instead, it may just be investors have had enough of the company – with shares down 61% in the past year and have gone nowhere this calendar year.
Iron ore miners BC Iron Limited (ASX: BCI) and Mount Gibson Iron Limited (ASX: MGX) fell 7.7% to 18 cents and 6.9% to 27 cents respectively. Investors are obviously ignoring the 4% jump in the iron ore price overnight – with some analysts already calling for BC Iron to shut up shop, rather than lose shareholders more money. As I wrote earlier today, if even the big miners aren't worthy of your investment, you might want to steer well clear of the juniors.
