Wellard shares were hammered this week as the company announced a serious profit downgrade (8.4% on its prospectus forecast). A $10000 investment in the company’s float would now be worth little more than $6000.
Why the profit downgrade? A few reasons but they include having engine failures on two ships. Yep the shareholders (and sponsor brokers Deutsche, UBS and Morgans) are now facing some of same risks as the animals from which they profit.
As Keniry (2004) said, it's an inherently risky business.
Ref: The West Australian 2nd March 2016