The Australian sharemarket has soared more than 1% after Chinese regulators managed to get the nation's heavy selloff under control. Although the gains have been relatively widespread there are a number of companies drifting heavily into the red-zone with each of the following five down a minimum of 6% for the session so far.
Bellamy's Australia Ltd (ASX: BAL) is a Tasmanian-based dairy producer that has generated enormous returns for investors since its ASX debut just under 12 months ago. While its shares peaked at $5.59 on Monday this week, it has since retreated in what could simply be a case of investors taking some profits off the table. It's down 7.7% today.
Orthocell Ltd (ASX: OCC) is another company that has enjoyed a remarkable run with its shares more than tripling since the beginning of the month (the company was even forced to respond to two 'please explain' notices from the ASX). However, investors may have cooled on the company's speculative prospects at these prices, with the stock retreating 8.2% today to 84.5 cents.
Cash Converters International Ltd (ASX: CCV) has fallen 6.7% to trade at just 70 cents as investors continue to fret on the payday lender's future prospects. Although Cash Converters could be an excellent pickup at its current price, investors also need to acknowledge the intense regulations hovering over the industry which could impact its future earnings ability.
Gage Roads Brewing Co Limited (ASX: GRB) has proven to be a terrible investment over the last six months with its shares down 71% in that time. The stock spiked recently with investors perhaps recognising the improved risk/reward payoff, although that interest has since worn off once again. It's down 6.5% today at 4.3 cents per share and investors would be wise to give it a wide berth in my opinion.
Arrium Ltd (ASX: ARI) has also been hammered during today's session with the stock trading 7.7% lower. Arrium is one of Australia's junior miners which is being crushed under the weight of falling commodity prices. Although the iron ore price rose overnight, it is still expected to fall significantly before the end of the year with Goldman Sachs slapping a 10 cent price target on the stock at 20% below today's level.
