It was a strong day on the markets today with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rising 1% and briefly hitting 5,219 points, it's highest mark since early January. The index is also up more than 10% since hitting 4,706 on February 10.
So much for those calls by some misguided analysts to 'sell everything' – a view we suggested might prove to be wrong.
But despite the strong turnaround so far this year and the rise today, not all shares ended up. These four companies saw their shares dumped.
Capitol Health Ltd (ASX: CAJ) share price sank 14.3% to $0.18, after posting a strong rally from 12 cents in late March to 21 cents – a gain of 75%. Long-term shareholders can more than likely disregard today's fall and mark it down to traders taking profits. The diagnostic imaging company could be cheap at today's prices, but will be highly volatile until we know the results of the review into the Medical Benefits Scheme which is due later this year – and how that will impact on Capitol's earnings.
Liquefied Natural Gas Ltd (ASX: LNG) share price swooned 9.5% to $0.57, again most likely due to traders taking a profit after the shares rallied 27.3% yesterday. The company announced two positive pieces of news yesterday, receiving Federal Energy Regulatory Commission (FERC) approval to site, construct and operate its LNG processing plant in Louisiana, US and FERC also approved the Kinder Morgan Louisiana Pipeline LLC to install compression and other related facilities on its pipeline to transport gas to LNG's Magnolia plant.
Silex Systems Ltd (ASX: SLX) saw its share price drop another 7.4% to $0.31, after the share price plunged 45% yesterday. Silex announced yesterday that its licencee, GE-Hitachi Nuclear Energy, was looking to exit its joint ventures with Silex due to subdued market conditions and changing business priorities. The biggest problem Silex faces is there may be no commercial buyers of its uranium enrichment technology given the rise of renewable energy and substitute energy sources such as natural gas. Clearly investors were still worried today about the company's future.
Surfstitch Group Ltd's (ASX: SRF) share price fell 6.6% to $1.21, despite no news from the company. Shares have now dropped more than 10% in the past 5 business days, more than likely as a result of no new news. As you may recall, Surfstitch's former CEO Justin Cameron quit unexpectedly in mid-March, stating at the time he was pursuing a plan to take Surfstitch private. Since then, we've received no further news on that front, and some investors who may have bought in on expectations of a takeover offer being received within weeks may have become disillusioned or impatient and sold out.
