Why these 4 ASX shares crashed on the market today

Is there any relief in sight for Ziptel Ltd (ASX:ZIP), Silex Systems Ltd (ASX:SLX), Pacific Brands Limited (ASX:PBG), and JB Hi-Fi Limited (ASX:JBH)?

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The S&P/ASX 200 (INDEXASX: ^AXJO) (ASX: XJO) rose strongly today, lifting 1% to 5,191 points as oil shares jumped higher.

A number of recent losers extended their losses today, while a couple of new businesses joined the list. Here’s what you need to know:

Ziptel Ltd (ASX: ZIP) dropped 11% to $0.275, extending the year’s losses despite a recent investor presentation and an announcement regarding the company’s initial monetisation process. Ziptel reported on 8 April that it had earned A$62,000 since 14 March 2016. This is from less than 1% of its customers who are paying customers. Investor attention appears to be primarily focussed on the company’s dwindling cash balance, which a falling share price is going to make considerably harder to boost.

Ziptel shares are down 57% in the past 12 months.

Silex Systems Ltd (ASX: SLX) lost 6% to $0.32 on top of yesterday’s wipeout as investors digest the news that Silex’s significant partners are looking to withdraw from a joint venture aimed at commercialising the company’s eponymous uranium enrichment technology. Today Silex trades roughly in line with its cash balance, which was equivalent to $0.32 per share in February. Whether that could be an opportunity depends on how the company’s search for funders goes, with management considering self-funding this year’s R&D.

Silex shares are down 37% in the past 12 months.

Pacific Brands Limited (ASX: PBG) fell 6% to $0.85 despite a plug from veteran fund manager Geoff Wilson yesterday, who named it as one of his favourite picks to Fairfax media. Pacific Brands has undergone a remarkable turnaround in recent times, with the company swinging from a massive loss to growing revenues and profit in the recent reporting period. The business also produced a decent cash surplus and, with $80 million in the bank, felt confident enough to return to paying dividends.

Pacific Brands shares are up 90% in the past 12 months.

JB Hi-Fi Limited (ASX: JBH) fell 6% to $21.11, possibly as a result of investor fears regarding the potential for a greater presence from global giant Amazon in the Australian marketplace. These fears are not unfounded, given the convenience, name recognition, and buying power that Amazon brings to the table. However, it is too early to tell if the e-commere giant’s presence will lead to a dramatic shake-up of the Australian retail industry as some are expecting. Bearing in mind JB’s recent shift into furniture retailing, both businesses could exist side by side as many consumers still appreciate the ‘hands on’ nature of stores as well as the ability to speak to knowledgeable salespeople.

JB Hi-Fi shares are up 13% in the past 12 months.

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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.

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