The biggest share tanks in history
June 23, 2010
Here is a list of some of the biggest share price tanks in recent Australian history that were triggered by an announcement.
Allco Finance Group: shares plunged $1.94, or 64%, to $1.11 after shocking the market with this half year "profit" presentation on February 25, 2008, coming off a two week suspension. Allco is now in liquidation.
ABC Learning: this woeful half year profit result released on February 25, 2008, caused a massive 42.7% slump in the share price the next day from $3.74 to $2.14, although this was well up from the intra-day low of $1.15 as four directors were margin called. ABC is now in liquidation.
Babcock & Brown: when the true terms of the investment bank's market capitalisation review clause was revealed in this letter on June 12, 2008, shares in the company suffered a two day slump of 44.8% from $9.52 to $5.25. In 2008 nearly 99% of their market value has been destroyed.
Pacific Brands: Australia's largest clothing maker, announced that dividend payments will be dramatically reduced as a way of reducing debt. Shares of Pacific Brands have plunged 87% in the past 12 months from $3.30 to 40c.
Fortescue: took a beating in the last 6 months of 2008. A high debt level and the falling iron ore price have been major contributers to the falling share price which has plummeted nearly 85%, from a high of almost $13 to $2, in the 6 months from June 2008.
Apac Coal: one only two floats in 2008, the coal price and sales have been tumbling heavily wiping off millions. Apac is a long way from its initial listing price in June 2008 of 20c, finishing 2008 at around 3c. An 85% fall in 6 months.
Centro Property Group: crashed 84.5% from $5.70 to 88c in two trading days after dropping this bombshell on December 17, 2007, revealing that it couldn't roll over $4 billion in short term debt.
Macmahon Holdings: because of the mining slowdown, Macmahon announced that the first half profit forecast could be down by up to 35%. Between October - December 2008 the share price plummeted from $1.90 to 40c or 83%.
Oz Minerals: spruiking there was $1 billion in cash in the bank as of June 2008, metal prices plummeted 60% along with the $1 billion in the following 6 months. OZ Minerals' market value has fallen by $6.5 billion, or 79%. Trading is suspended until Feb 27 2009 whilst debt re-financing is explored.
Macarthur Coal: As the demand for coal decreases, so does the share price of Macarthur Coal. In December 2008, Macarthur announced a reduced production schedule, no interim dividends and job cuts. First half profit predictions have also been diluted by up to 50%. In the 6 months since July 2008, the share price has plunged from around $21 to $3 or 78%.
Paperlinx: in Dec 2008 shares fell 32% or 34c on the day of an announcement predicting up to a 15% first half profit fall. In 8 months the share price has fell from $2.70 to 60c or 77%. It also has breached lending covenants and has failed to fully complete asset sales.
Credit Corp: shares in the debt collector plunged 77% from $3.08 to 91c after this profit downgrade released on February 11, 2008. The chairman and CEO were both gone within weeks.
Rio Tinto: on the back of the announcement that BHP-Biliton was scrapping its takeover bid, Rio Tinto shares fell 35%. In addition to the slow-down in China, Rio shares have plunged more than 70% from $155 in May 2008 to $40 in December 2008.
MFS: shares in the failed Gold Coast property and finance company plunged 69% on January 18, 2008, after co-founder Michael King revealed a shock $550 million capital raising in this presentation on a proposed demerger. He resigned two days later.
City Pacific: shares in the Gold Coast property developer and financier plunged 60.5% from $2.45 to 97c in the two days after releasing this revised profit result late on Friday, February 29, 2008.
Leighton: the value of Australia's largest construction company has fallen by more than 60% in the past 12 months. In Jan 2008 the share price was around $63 and Jan 2009 is around $20. A recent 10% fall was triggered by an announcement of reduced profit forecast of asset write-downs.
Transfield Services: following a 3 week trading halt, Transfield announced that a $300 million capital raising excersise was going to be at a discount to market price. Each share was offered at $1.25 which was out of line with the share price at the time of $3.50. When trading resumed, the price plunged 60% which corrected the difference.
Burns Philp: shares plunged 58.3% from $2.16 to 90c on September 24, 1997, after it failed to sell the herbs and spices division and instead took a massive write-down.
Elders: plunged 46% to 44c because of downgraded earnings guidance and now expect a 2009/10 full year loss of between $8-$14m, compared to the original prospectus target of a $55.7m profit.
Consolidator Harts Australia: suffered a 45% drop in their share price in two days, after the company announced it lost $9.4 million in 2000.
Flexigroup: the Margaret Jackson-chaired consumer finance company halved from $1.11 to 55c in the four trading days after releasing this disappointing half year profit on February 25, 2008.
Babcock & Brown Power: shares dropped by 37% to $1.18 over two trading days in late May 2008 after it revealed a $300 million shortfall in its attempts to refinance $3.1 billion in debt.
Pharmaxis: down 36.7% after releasing clinical trial results for their cystic fibrosis drug Bronchitol. Results showed the drug narrowly failed to improve lung function compared to the placebo.
Babcock & Brown: shares plunged 36% to record low of $2.22 on August 21, 2008 after revealing a disappointing profit and major board and management overhaul.
Transpacific: shares slumped 36%, or $1, to $1.80, wiping off $311m their market value on February 17, 2009 when they issued a profit downgrade.
Pacifica Group: shares plunged 7c, or 32%, to 15c, following a steep downturn in the automotive sector. This car parts supplier announced a loss of $242 million for the December half. In 2007 the managed a profit of more than $21 million which is a $260 million downturn.
Downer EDI: announced a $199 million provision on August 8, 2006, against its troubled Douglas Mineral Sands project in Victoria, resulting in a net loss of $25 million for 2005-06. Share price crashed the next day by 30% from $7.40 to $5.15.
Commander Communications: after a three week suspension for failing to lodge its accounts, the troubled telco saw its shares plunge 29% on October 19, 2007, when trading resumed.
Hedley Leisure & Gaming: share price plunged 28% to 93c after this statement was released on March 6, 2008, revealing some interest rate hedges had been unwound to reduce the company's $850 million debt.
Babcock & Brown Power: plunged 28% on June 12, 2008, after the WA gas explosion and its credit rating was downgraded.
AWB: plunged 25% or 51c to $1.53 on February 9, 2009, following a profit downgrade warning at the 2009 AGM.
GPT: shares in the property giant plunged 24% from $2.46 to $1.87 in the two days after revealing this shock profit warning on July 7 which cut forecast 2008 operating earnings by 26.7% from $633 million to just $464 million.
Asciano: July 8, 2008, saw the share price plunge 20% or 65c to $2.72 on continuing rumours of a big rights issue to pay off debt.
Commander Communications: the voice and data communication solutions provider reported a disappointing annual profit increase to $23.6 million on August 22, 2005, sending its shares plunging 46c to $2.07, a loss of 18% on the day.
Ausenco: the mining contractor responsible for Equinox's Zambia-based project has fallen another 3.8% making a 16.6% fall in two
days because of a fire at the project.
Downer EDI: shares crashed 16.5% on August 2, 2007, when CEO Stephen Gillies quit after the 2006-07 profit forecast was slashed from $160 million to $101 million.
Kaz: shares in the IT company dived 5c to 27c (15.6%) on 19 September 2003 after the announcement that chairman Tony Hartnell (ex ASIC boss), Michael Lillicrap and Murray Wells (independent directors) had resigned after a split emerged between the independent and executive directors over how the new CEO would be appointed.
Equinox: following the news of a fire at their Zambia-based project, the share price fell another 5.8% making a 15.7% fall.
Boral: shares dived 15.7% on January 28, 2009, after another shock warning that profits would drop by 40% in 2008-09 to $120 million.
Transurban: after an announcement it will be slashing dividends, the share price fell nearly 15% to $4.62. This is on top of a 20% share price slump the previous day.
Suncorp: a profit warning on July 31, 2008, explaining that earnings would drop by $500 million sent Suncorp shares tumbling 14% to $11.53 the next day.
Just Group: July 2, 2008 on the back of lower than expected profits coupled with the overhang of a Soloman Lew takeover, the share price plunged 12 per cent to $2.80.
Brambles: shares fell 10% in 2001 when it was announced that CEO John Fletcher would depart after a disagreement with new chairman Don Argus.
Macquarie Group: this announcement on Feburary 6, 2008, that Allan Moss was retiring and Nicholas Moore would take over as CEO sent shares in the Millionaire Factory down 9%, although the market was off almost 2% and we also had an operational update on the day.
Coles Myer: shares fell 8% on the day in 1994 when their finance director Philip Bowman was terminated and then blew the whistle on Yannon.
Woolworths: the defection of supermarket boss Ian Cornell to Franklins in November 1998 saw Woolies shares plunged 7.3% as $504 million was wiped off its value. Woolies has since doubled as Roger Corbett proved all the critics wrong.
Perpetual Trustees: when Peter Morgan, senior portfolio manager, resigned from his role in September 2002, Perpetual's share price plunged 7% although it recovered some ground the next day.
Check out all the Mayne Report business lists here. Go here to see the full comprehensive list of lists we've created documenting the dominance of foreign investors in Australia and our relative poor performance on the international business stage.
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