Investors were given some hope this morning that the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may finally snap its four-day losing streak as the benchmark index jumped 0.4%, but those early gains have now been erased.
As at 3:00pm (Sydney time), the ASX 200 had fallen 0.6% — pushing it further towards the dreaded "technical correction" status – while the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) is down 0.5%.
While the losses have been relatively widespread – with the Big Four banks once again leading the downward charge – shareholders of the following four stocks have even more to cry about.
Metcash Limited (ASX: MTS) is suffering at the hands of the market as a result of a non-cash impairment it booked yesterday. The company confirmed it was on target to achieve its underlying earnings target, but that excludes a massive $640 million write-down on the business. Meanwhile, it also scrapped its dividend policy which acted as the nail in the coffin. The stock is down 4.2% after having hit a new 14-year low earlier in the session.
Ainsworth Game Technology Limited (ASX: AGI) has dropped 3.2%, adding to its 7% fall from yesterday. The pokies machine maker said yesterday that headwinds experienced in the first half of the year had unexpectedly continued in the second half, which should see net profit after tax (NPAT) remain similar to last year's $61.6 million result.
Liquefied Natural Gas Ltd (ASX: LNG) once again finds itself in the red-zone ahead of tonight's OPEC (Organisation of Petroleum Exporting Countries) meeting. Last time the members met, oil prices plummeted (oil still trades at a near 50% discount to its price from this time last year) and market participants may be nervous a similar outcome could come from tonight's meet. The stock has dropped 3.6% to trade at $3.72, down from nearly $5 a share back in early May.
Retail Food Group Limited (ASX: RFG) has extended its sharp decline, falling another 2.7% to trade at $5.47. It hit a low of $5.37 earlier, which represented an agonising 19% decline since the beginning of the week. The loss can likely be attributed to an impairment booked by the company earlier in the week, together with the announcement of higher costs in the near-term.
Are any of these stocks a BUY?
Of each of these companies, Liquefied Natural Gas and Retail Food Group could both represent reasonable buys right now. Liquefied Natural Gas is the riskier, and somewhat more speculative of the two but could reap huge rewards in the future while Retail Food Group appears to have been oversold, in my opinion.
Retail Food Group has generated enormous returns for shareholders over the last nine years or so and now boasts a market capitalisation just under $1 billion. Before that however, it was a small-cap stock that smart-investors picked up at a bargain price.
