Why these 4 shares are plunging on the ASX today

Credit: Alex Proimos

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is being dragged lower by falling commodity prices and weak leads from international markets overnight. Crashes in oil and iron ore prices saw major US and European markets sold off as investors’ fears over China were reignited.

The following four shares, however, were trading sharply lower than the market.

Liquefied Natural Gas Ltd (ASX: LNG) – down 10%

LNG Ltd is the prospective natural gas tolling facility owner whose key projects are located in North America. LNG Ltd’s proposed projects will turn natural gas into liquefied natural gas, for shipment, but require reliable supply from the nearby shale oil fields. Unfortunately, since LNG prices are linked to the oil price, the feasibility of LNG Ltd’s projects are being called into question now that the oil price is hitting 11-year lows. Over the past year, the LNG Ltd share price has fallen from $5 to just $0.56.

Godfreys Group Ltd (ASX: GDY) – down 7%

Following falls of almost 31% yesterday, shares of vacuum and floor cleaning products specialist, Godfreys, again fell hard today. Yesterday, the recently-listed retailer made an ASX announcement which revealed a profit downgrade for its 2016 financial year and the replacement of CEO, Tom Krulis. The company blamed its failure to transition its product offering as consumers’ demand shifted to stickvacs from barrel vacuum cleaners.

Spotless Group Holdings Ltd (ASX: SPO) – down 6%

Yesterday, Spotless Group, a cleaning services business, saw its share price pop 15% after the company said its CEO, Martin Sheppard, bought 50,000 shares on market. Mr Sheppard holds 290,439 Spotless shares (worth around $300,000). However, the positive sentiment caused by the insider buying appears to have worn off today, with shares trading sharply lower.

Wesfarmers Ltd (ASX: WES) – down 1.75%

Shares in Australia’s leading conglomerate and owner of brands such as Coles, Bunnings Warehouse, Kmart and more, fell as much as 2.5% today. Amongst the broader market malaise, Wesfarmers’ share price fell on the back of news that it made a $699 million offer to acquire UK home living and garden business, Homebase. While there’s risk involved in every acquisition, the price offered by Wesfarmers may prove to be a good one if the company can turn the business around.

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Motley Fool writer/analyst Owen Raszkiewicz owns shares of LNG Ltd. 

Owen welcomes your feedback on Google plus (see below), LinkedIn or you can follow him on Twitter @ASXinvest.

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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.

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