Today was a pretty average day for the S&P/ASX 200 which ended down 0.16% for the day. Ho-hum.
It was a different story for the four following stocks however, which each took a beating. Here's what you need to know about the recent falls at:
Netcomm Wireless Ltd (ASX: NTC) shares fell another 10% today to $2.77, immediately after yesterday's 6% decline as investors twig to the company's possible overvaluation – especially in the absence of further information on its latest contract win, details of which are held in confidence. Investors love a winner and Netcomm certainly has plenty of potential in both the conventional telecom sector and nascent machine-to-machine (M2M) communications.
However, despite today's fall, Netcomm still trades on a Price to Earnings (P/E) ratio of an eye-watering 144 times last year's earnings, and doesn't appear good value today.
Reffind Ltd's (ASX: RFN) share price dropped a drastic 16.1% to $0.73 on no news, and despite Wednesday's announcement of Australia's largest McDonalds franchise becoming a client. Reffind's fall is reminiscent of 1-Page Ltd (ASX: 1PG) which has shed 21% in the past month as investors grow sceptical about whether the valuations of either company are likely to be satisfied.
Reffind is now close to the $0.65 cents I initially paid for it, and given the number of contracts won recently I might consider topping up if it falls further.
Meanwhile, the horror continues for Slater & Gordon Limited (ASX: SGH) shareholders, with its share price crashing another 26.6% to $0.69. This comes on the back of yesterday's 51% crash. Unfortunately, proposed changes to UK personal injury law could potentially have a very significant impact on the legal eagle's case volumes in 2017 and beyond, which means that today's fall isn't necessarily a buying opportunity.
Shares could well decline further in coming days.
Finally, Spark Infrastructure Group's (ASX: SKI) share price slipped 8.7% to $1.88 upon resuming trade today. Spark entered a trading halt two days ago to launch a capital raising to fund a 15% stake in TransGrid, a large electricity transmission network. Investors are a little nervous over the price paid, a staggering $10 billion, and recent coverage in the media has been quite sceptical of the deal, prompting today's sell-out.
Despite the fall, Spark does own an attractive network of infrastructure assets and offers an unfranked yield of 5.6% that could be pretty useful in an income-generating portfolio.
