Why these ASX 4 shares are cratering this week

Yesterday was a flat day for the S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO), which closed down 0.04% to 4,929 points.

A number of shares fell substantially further however, and here’s why:

Blackmores Limited (ASX: BKL) crashed 12% to $177 on no news and minimal volume. With a majority of Blackmores shares tied up by significant shareholders, the stock continues to be prone to big price swings as a result of a limited pool of traders – and investors should expect further volatility in the future. Most recently, the market was worried by news that China’s new tax on imports could derail sales, although management remains optimistic.

Blackmores shares are up 207% in the past 12 months.

Slater & Gordon Limited (ASX: SGH) lost 10% to $0.22 on no news, hitting new 52-week lows. Shares have been battered by a number of woes, including high-profile staff resignations, asset write-downs on the company’s recent business purchases, fears of potential regulatory change in the UK, as well as critical concerns regarding the company’s cash flows and debt burden. Recently, Law Gazette in the UK reported that Slater & Gordon was undergoing a massive restructure in that market, which may ease or exaggerate shareholder fears.

Slater & Gordon shares are down 97% in the past 12 months.

Lovisa Holdings Ltd (ASX: LOV) dropped 5% to $2.20 on no news as investor uncertainty around the stock’s value continues. Shares were crunched as low as $2 back in February after the company’s interim report, although this could have been an overreaction by the market. Lovisa is rapidly expanding its store network, and with a significant chunk of revenue already coming from overseas, it is one Australian retailer that could be worth a closer look.

Lovisa shares are down 19% in the past 12 months.

Alumina Limited (ASX: AWC) lost 5% to $1.23 on no news, despite an increase in the value of aluminium overnight. Significant shareholder Perpetual announced a reduction in its Alumina stake from 12.9% to 11.48% last week, while Alcoa Inc GDR (ASX: AAI) in the US signed a contract worth $350 million over the next two years last Thursday. Alumina Limited is a 40% shareholder in US-listed Alcoa. Although Alumina is down for the year, its outlook is uncertain, with many analysts predicting the value of aluminium (and thus potentially alumina and bauxite) is likely to fall substantially further.

Alumina Limited shares are down 26% in the past 12 months.

What would YOU do if the market crashed tomorrow?

With national debt levels at an all-time high and US interest rates set to rise again, some experts are predicting a market crash. Discover our Foolish experts' advice on what YOU should do in the event of a crisis -- including expert tips on how to protect YOUR portfolio.

Simply click here for your FREE copy of our newly updated report, "What to Do When the Sharemarket Crashes". Click here, it's FREE!.

Motley Fool contributor Sean O'Neill has no position in any stocks mentioned. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.