The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) and ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) indices ended trading today around 0.3% higher, on the back of positive movements in the share prices of the major banks, Telstra Corporation Ltd (ASX: TLS) and CSL Limited (ASX: CSL).
However, the market was merciless in selling down the next four stocks:
- Slater & Gordon Limited (ASX: SGH) shares plummeted an eye-watering 51%. Now down an incredible 65% in one month, Australia's largest law firm is now less than $30 million larger than the domestically-focused Shine Corporate Ltd (ASX: SHJ). To put it another way, the entire Slater & Gordon Group is now worth less than 30% of the $1.2 billion acquisition it undertook in the UK earlier this year. The catalyst for today's sell-off was a surprise move by the UK government to potentially implement changes that will restrict the right of people involved in traffic accidents to get compensation for pain and suffering. The company said the changes wouldn't affect its FY16 results but could affect 2017's results.
- The Netcomm Wireless Ltd (ASX: NTC) share price took a break from its recent surge to fall 6% today. The junior machine-to-machine technology developer is still worth 377% more today than it was six months ago. And with a positive long-term growth trajectory, savvy investors will no doubt be running the ruler over Netcomm's shares today.
- The share price of luxury adventure retailer Kathmandu Holdings Ltd (ASX: KMD) today fell 5% on news that former Chief Operating Officer, Mark Todd, sold down part of his holding in the company. However, the Kathmandu share price has fallen from over $1.60 during last week's AGM to $1.46 today. At last week's AGM, Kathmandu showed same-store sales growth of 4.8% and sales growth of 8.6%.
- Finally, the BHP Billiton Limited (ASX: BHP) share price continued to tumble. Down 7% for the day, BHP's share price has fallen 23% in just one month, as concerns over a dam wall burst in South America, falling commodity prices and a possible cut to its dividend weigh on investor sentiment. It is easy to see why investors are concerned about the dividend, based on last year's payout, BHP shares are trading on a dividend yield equivalent to 8.5% fully franked.
