Driven by the Big Four banks, the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has enjoyed a relief rally today with the benchmark index sitting 1.3% higher late in the afternoon. While the gains have been widespread; there are a number of companies that are causing their owners plenty of pain as well.
The most notable of these companies is SEEK Limited (ASX: SEK). The online jobs advertising business reported its full-year earnings results this morning, revealing a stronger-than-expected revenue figure but a disappointing underlying net profit result. Meanwhile, investors weren't happy with the forecasts provided by management for the new financial year and subsequently sold the shares down 11.5%.
Fortescue Metals Group Limited (ASX: FMG) is also on the chopping block today with its shares trading 2.9% lower at roughly $1.93. Goldman Sachs recently suggested the iron ore price could fall another 30% from its current level which could prove catastrophic for the nation's high-cost miners, and those (like Fortescue) with bucket loads of debt. The shares are currently trading 20% higher than their 52-week low, so some investors may be taking the opportunity to exit their positions.
Capilano Honey Ltd (ASX: CZZ) slipped 5.4% today, despite the absence of any bad news. In reality, the fall can likely be attributed to the stock's incredible gains recently with investors perhaps ready to take some of their profits off the table. Indeed, the stock traded at just $5.75 in November 2014 before hitting a record high of $22 yesterday. With the stock now buzzing around the $18.30 mark, investors could look to take the opportunity to start building a long-term position.
Genworth Mortgage Insurance Australia (ASX: GMA) suffered a shocking 11.2% selloff with its shares now trading at $2.86 – down from yesterday's $3.22 closing price. The fall can partially be attributed to the stock now trading without rights to its fully franked 12.5 cents per share dividend, although it is also likely under fire from the market as a result of the headwinds facing the property market.
Indeed, the financial regulators are making it tougher for investors to take out new loans to buy properties while the banks are also becoming increasingly concerned about the ability of some businesses and individuals to repay their loans. That doesn't bode well for Genworth and could explain today's heavy sell-off.
