The S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) has soared 2.2% to 5,074.3, as investors jumped back into beaten up blue chip stocks, including the big four banks, energy stocks and Telstra Corporation Ltd (ASX: TLS).
But some investors were pulling their investments out of several stocks, some on disappointing news. These four companies were heavily sold off.
SMS Management & Technology Limited (ASX: SMX) share price crashed 23.5% to $3.41, after the company unveiled a forecast earnings downgrade, as we discussed in detail here. IT Consulting is a tough gig at the best of times, but it seems clients are keeping their hands in their pockets at the moment.
Simonds Group Ltd (ASX: SIO) share price dropped 13.6% to $0.93. The homebuilder gave a market update yesterday and announced a strategic review of its Madisson Projects – a business-to-business project builder, which appears to be struggling. Simonds also announced a $6 million acquisition of West Australian homebuilder Gemmill Homes Group – WA's eighth-ranked homebuilder with revenues of $132 million. Investors were clearly disappointed in the news and opted to sell out instead.
Ainsworth Game Technology Limited (ASX: AGI) saw its share price sink 6.5% to $2.90, despite announcing the acquisition of Nova Technologies. The purchase will see Ainsworth's units in participation in North America double to more than 2,600. But perhaps investors were focused on the poker machine company's comment that margins will fall temporarily thanks to the lower Australian dollar in the near term. That will result in the pre-tax profit for the 2016 financial year being similar to the previous period.
MMA Offshore Ltd (ASX: MRM) share price slipped 4.1% to $0.23, most likely on the back of a broker downgrade. Hartleys maintained a 'Reduce' recommendation on the marine services company, as market conditions in the oil and gas sector deteriorate fast. We also provided an in-depth look at MMA Offshore yesterday.
