5 stocks sinking on the ASX today

S&P/ASX 300 closes up 0.5%, but these 5 fell more than 8%

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A third-straight day of gains on the stock market has seen the S&P/ASX 300 (INDEXASX: XKO) (ASX: XKO) close up 0.5% at 5,633.30. The index gained 4.2% for the month of July.

But it wasn't all great news for every stock. These five took a pummelling…

GI Dynamics Inc (ASX: GID) was smashed down 68.9% to 4.2 cents. The medical device manufacturer looks on increasingly dangerous ground, after reporting it would prematurely terminate one of its clinical trials and in a second blow, revenues had more than halved in the last quarter. You can read our full coverage here.

Unilife Corporation (ASX: UNS) sank 25.4% to 44 cents – after rising 33.3% yesterday. The biotech stock released its quarterly report today and it seems clear that the company was going to run out of money next quarter. That was until they signed a deal with two investors, Lincoln Park Capital and Cantor Fitzgerald, which could bring in up to US$70 million over time but dilute existing shareholders.

Australian Dairy Farms Group (ASX: AHF) fell 10.5% to 17 cents. The company announced that it was acquiring an additional farm in the South Western dairy region of Victoria today, but declined to release financial details until next week. The company expects to see strong positive operating cashflow in the next two quarters, but perhaps shareholders were expecting this quarter to be positive as well.

Uranium miner Paladin Energy Ltd (ASX: PDN) fell 8.9% to 20.5 cents, but shares rose strongly yesterday. Management announced that executive pay would be slashed to further cut costs, which the market liked, but it may be too little too late. Paladin has been operating with too high costs for many years, destroying shareholder value and needs more than executive pay cuts to make it investment grade.

Alexium International Group Ltd (ASX: AJX) fell 8% to 69 cents. The company also released its quarterly report today, which included upbeat commentary from management. Somehow, investors weren't happy though, perhaps expecting more than the company delivered. Alexium holds a number of patents to develop flame retardant treatments for synthetic fabrics which looks very promising – one reason why the company's shares have soared 655% in the past 12 months.

 

Motley Fool contributor Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga 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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »