It was another rough day for the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO) today, with the index losing 2.8% to 4,832 points. Further falls could put us below levels not seen in the past two years or more.
As ever, a number of stocks fell significantly further than the index today, and here's why:
Myer Holdings Ltd (ASX: MYR) fell 5% to $1.02 on no news as the company continues to grapple with difficult trading conditions and heavy short interest. IOOF Holdings Limited (ASX: IFL) recently became a significant holder of Myer with a 5% stake, while Goldman Sachs has a significant short-selling interest in the stock. As of 9 am this morning, ASIC reports indicate that 17% of Myer's issued shares were held for short-sell. With such high short interest, any missteps could have a heavy impact on Myer's share price.
Myer shares are down 43% for the year.
Lifehealthcare Group Ltd (ASX: LHC) fell 6% to $2.48 as investor uncertainty over the group's industry continues in the wake of a government investigation into the healthcare sector. Several insurers have claimed that the cost of implanting medical devices is a major source of unnecessary healthcare spending, and thus, shareholders worry Lifehealthcare could find itself on the receiving end of adverse government changes – much like those in the pathology and diagnostic imaging sectors.
(readers wanting to find out more about Lifehealthcare's recent price fall should read this article),
Lifehealthcare shares are up just 0.3% over the past twelve months.
Impedimed Limited (ASX: IPD) lost 11% to $0.93 after the company announced it was raising funds in a manner that significantly disadvantaged existing shareholders. New shares worth A$75m will be issued to 'sophisticated and professional investors', at a price of $0.95 apiece, while existing shareholders will be able to subscribe for a total of A$7.5m in shares at a later date. Share prices often fall to the price new shares will be issued at, and the enormous amount of new shares Impedimed is issuing perhaps also spooked investors.
Impedimed shares are up 16% for the year.
Adacel Technologies Limited (ASX: ADA) fell 9% to $2.21 in what could be potential profit-taking after the company's market update last week sent its share price up 20% in a single day. Since then, shares have declined roughly 10%. Adacel has been making waves with its rapid growth and soaring share price, and indeed, the company is small enough to keep growing for quite some time. However, readers will also want to be wary of how much growth is already factored into the share price.
Adacel shares are up 738% in the past twelve months.
