The Motley Fool

Why these 5 ASX stocks are getting crushed today

The Australian sharemarket has continued its recovery today in a rally led by the Big Four banks. Investors are defying a heavy drop in the iron ore price overnight as well as worries related to Greece’s loan default, pushing the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) and ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) indices 0.5% higher.

On the other hand, here are five stocks that aren’t doing so well…

Fortescue Metals Group Limited (ASX: FMG) shares have crashed 5.4% to trade within 6 cents of a new six-year low at $1.81. The iron ore price fell 3.2% overnight with many experts predicting another heavy drop over the coming months. As it stands, the commodity trades for roughly US$59 a tonne with Capital Economics suggesting it will fall below US$40 a tonne by the year’s end.

Newcrest Mining Limited (ASX: NCM) has extended on its loss from yesterday, falling another 2.9% to $12.64. Although gold should arguably be popular amongst investors right now, considering the uncertainty being caused by Greece’s debt situation, the price of gold fell 0.6% overnight, ultimately weighing on the producers themselves.

Kathmandu Holdings Ltd (ASX: KMD) was the market’s top performing stock on Tuesday after Briscoes Group announced its intentions to launch a takeover of the New Zealand-based retailer. As it stands, no further comments have been made regarding the takeover so some investors may be taking their profits off the table in case a deal falls through. The stock is down 2.1%.

Nine Entertainment Co Holdings Ltd (ASX: NEC) fell 1.8%, despite the absence of any company-specific news which would explain the drop. Australia’s free-to-air networks are in an uphill battle against falling advertising revenues and diminishing audience rates as consumers switch onto Netflix and other sources of entertainment. Some analysts have even predicted the end for the networks by 2020, which doesn’t bode well for investors in the sector.

1-Page Ltd (ASX: 1PG) has fallen another 3.6% today, giving it a total decline of 6.5% since the beginning of the week (although, it’s still up 21% over the last fortnight). 1-Page is a speculative bet in that it is trying to revolutionise the way in which employers hire staff. While it is no cheap investment right now, it could prove very rewarding if everything goes according to plan.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.


Motley Fool contributor Ryan Newman has no position in any stocks mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.