The ALL ORDINARIES continued its downward run today, losing 0.2% to be down 3.8% for the year, or 10% in the past six months. Resource stocks continue to be hammered as investors can't see any light at the end of a pretty dark tunnel.
A number of other stocks have been sold off however, and some may even present as a buying opportunity at today's prices:
WHITEHAVEN COAL LIMITED (ASX: WHC) is not one of them, even after its share price fell 7.1% to $0.627. Along with New Hope Corporation Limited (ASX: NHC), Whitehaven shares were hit hard by the successful resolution to the climate change talks in Paris over the weekend. With loads of debt and ultra-low coal prices pressuring revenue, Whitehaven is a very risky bet today.
Liquefied Natural Gas Ltd (ASX: LNG) also copped a hammering, diving 11.3% to $0.785 after the value of oil fell another 2% overnight. Investors are also uncertain about whether LNG's two projects are financially viable in today's depressed energy market, which means the company's share price is likely to remain volatile. Along with Whitehaven coal, LNG looks to be a high-risk purchase today.
Navitas Limited (ASX:NVT) slipped 3.1% to $4.32 after the company announced it would close a small number of underperforming businesses in the USA as part of a drive to reduce costs and focus management's time on value-creating businesses. The change is not expected to have any earnings impact on Navitas and the recurring nature of education earnings is likely to keep the company's 4.8% dividend looking quite attractive.
Prophecy International Holdings Limited (ASX:PRO) plunged 12% to $1.69 on no news, although the sale could constitute profit-taking given that Prophecy has risen more than 300% in the past 12 months. Sales are still accelerating – as the company is fond of reminding the market – and first quarter sales were ahead of the same period last year.
Today's price could represent a buying opportunity, although Prophecy currently trades on a Price to Earnings (P/E) ratio of 35 and investors should do their research on potential risk and reward before purchasing at today's prices.
