Another disappointing day on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO), with the market down 0.6% in later afternoon trading. While US markets keep hitting new highs, our market has yet to see the 6,500 mark reached prior to the Global Financial Crisis.
It's current at 5,474 points, a level that was first reached in December 2006. A decade on – and the ASX index has gone nowhere.
That doesn't help these four stocks, which saw their share prices sink.
Vita Group Limited (ASX: VTG) saw its share price lose more than 17%, falling to $2.955. The telecommunications retailer has renegotiated its contract with Telstra Corporation Ltd (ASX: TLS) which will likely mean lower commissions on some products and services – although that is expected to be offset by Telstra handing over more stores for Vita to manage. Still, margins are going to come down, and Vita doesn't look as good as it once did.
The Netcomm Wireless Ltd (ASX: NTC) share price sank 7.7% to $2.39, losing some of the gains the technology manufacturer has seen in the past few trading sessions. Last week, Netcomm announced a significant contract for the National Broadband Network (NBN), which will have a 'material' impact on the company's revenue over the next few years, and the share price rocketed. No doubt some less confident traders are taking some profits – although they may lose out if earnings skyrocket in the short to medium-term.
Orion Health Group Ltd (ASX: OHE) saw its share price smashed down 20.4% to $1.99 after reporting a first half operating loss of NZ$17 million, but says it is on track to achieve profitability during fiscal year 2018. Investors may also have dumped their shares with revenue growth for the year expected to be 'satisfactory' but less than 20% in constant currency terms. Additionally, Orion saw NZ$33 million cash flow out the door and has existing cash of just NZ$24 million – suggesting a capital raising could be on the cards.
Xenith IP Group Ltd (ASX: XIP) sank 10.6% to $2.70 after completing an institutional rights issue that raised $52.8 million at a share price of $2.40. A retail component to raise another $15 million under a pro-rata non-renounceable rights offer at the same price will open this Friday. The intellectual property (IP) and trademarks company is raising capital to acquire Griffith Hack, 'a leading Australian IP firm' for an upfront price of $152 million.
