The Motley Fool

5 stocks sinking on the ASX today

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.


Small caps can mean big returns - like Alexium above

Two of Australia’s most promising small companies are still flying under the radar. Discover these two exciting ASX investments in our brand-new special FREE report, “2 Small Cap Superstars”.

Click here now, it’s free! No credit card or payment of any sort required.

What are you waiting for?

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.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now