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Why these 4 ASX shares sank today

The S&P/ASX 300 (Index: ^AXKO) (ASX: XKO) gained 0.3% to close at 5,346.8, after an early rally was briefly crushed.

These four companies saw their share prices trashed…

Clover Corporation Limited (ASX: CLV) share price crashed 28.6% to 40 cents after the company’s clinical research study results for N3RO failed to meet its goal of reducing the incidence of bronchopulmonary dysplasia – a lung condition in premature babies. Clover continues to make omega 3 and 6 oils as ingredients for foods such as infant formula products, but the result also means Premneo Pharmaceuticals has cancelled its licence agreement with Clover. The two companies had anticipated positive results from the trial.

Spotless Group Holdings Ltd (ASX: SPO) share price dropped 9.9% to $1.045, perhaps as institutional investors switched into Programmed Maintenance Services Limited (ASX: PRG). Programmed’s share price soared more than 17% today, following a number of broker upgrades after yesterday’s results. Spotless provides facilities, management, catering, laundry and cleaning services to businesses and government departments.

Hills Ltd (ASX: HIL) saw its share price sink 6.7% to 28 cents, despite no news from the company. Hills’ share price has rocketed up 200% to mid-May as we wrote here, so it’s more than likely investors are taking some profits. As we wrote at the time, we viewed Hills’ shares as around fair value, but still plenty of work ahead for the company to continue justifying that price.

Martin Aircraft Company Ltd (ASX: MJP) share price dropped 5.3% to $0.63, and again it was most likely due to shareholders taking profits, after the jet pack manufacturer saw its shares spike more than 70% in the past week. In one day, shares rose as much as 44% and hit 65 cents thanks to an article in the Financial Times that was picked up by media organisations around the world.

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Motley Fool writer/analyst 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.