Today was a flat day for the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO), which fell 0.4% to 5,775 points. A number of shares fell significantly further however, and here's why:
Fletcher Building Limited (Australia) (ASX: FBU) dropped 10% to $7.53 after the company announced a downgrade to its full-year profit outlook. Fletcher now expects to earn between $610 million and $650 million for the full year, down from $720 million to $760 million previously. Fletcher shares are still up 11% compared to last year, however.
Nearmap Ltd (ASX: NEA)fell 3% to $0.53 on no news, as investors remain wary of the company's expansion into the USA. While Nearmap is not profitable, it is a minority player in both the Australian and US markets and is thought to have a strong pathway for growth ahead of it. Nearmap shares have risen 34% in the past 12 months.
Slater & Gordon Limited (ASX:SGH) lost 6% to $0.122 as enthusiasms cooled following a strong share price rise on Friday. With the business continuing to struggle and a possible debt to equity swap set to minimise the value of existing shareholder's stakes, the company is far too risky in my opinion and should be avoided. Slater & Gordon shares have fallen 55% over the past 12 months.
Stemcell United Ltd (ASX: SCU) plunged 12% to $0.185 on the tail of a ~1500% rise over the past few months. This tiny cap has been swept up in the excitement surrounding the marijuana sector at the moment, although as Foolish analyst Mike King warned, there are many possible reasons an investment in these companies could end in tears. Stemcell shares have skyrocketed since announcing their marijuana venture.
