Alesco Corporation (ALS) is an Australian-based building and construction products distributor, and is currently considered as one of the potential shares to sell.
ALS’s business model aims at connecting industrial trade customers in various markets throughout Australia and New Zealand, and has four divisions: construction and mining, decorative products, garage doors, and water products.
ALS sharply cut its FY profit guidance after market close on Tuesday, making it a prime candidate in terms shares to sell.
ALS sighted soft trading conditions in February, and an underperforming water products business, as significant drags on its earnings.
The company now expects earnings per share to be around 24-27 cents, as opposed to the 34-36 cents forecast in late January.
When deciding which shares to sell, profit warnings must be always be considered.
To illustrate this point, ALS was punished by investors yesterday, with its share price plummeting over 30%.