Why these 4 ASX shares are getting crunched today

Credit: ryan melaugh

It’s been a horror day for local investors with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) down a whopping 2.1%, or 110 points. While the pain has been widespread, these four shares are faring even worse today…

Liquefied Natural Gas Ltd (ASX: LNG) experienced a meteoric rise last week on takeover speculation, but its shares have come crashing back to earth. After falling 22.8% on Friday, the shares have lost another 10.6% today. This is possibly due to a pullback in oil prices, while investors may also have realised the shares had run too far, limiting the potential for a takeover approach materialising.

Surfstitch Group Ltd (ASX: SRF) has continued its horror run with investors now piling out of the embattled surf retailer’s shares. Investors appear hesitant to give the company another chance, selling its shares down 14.9% today, while they are now trading 86.6% below their 52-week high. That came after the company downgraded its earnings guidance again last week, prompting suggestions that the company could face a class action.

Cover-More Group Ltd (ASX: CVO) shares have lost 7.1% today with the shares now fetching just under $1.38. It’s possible that investors believe Brexit fears could impact the plans of international travellers which would, in turn, impact demand for travel insurance (which Cover-More Group sells). The upcoming federal election as well as fears of a potential Trump presidency may also be impacting sentiment for the company’s shares.

Appen Ltd (ASX: APX) has also fallen sharply today. At the time of writing, the shares were trading 7.6% lower at $2.30, which is down from a high of $2.50 on Friday. Although there has been no specific news from the company to explain the selloff, it is likely due to some form of profit-taking after a magnificent run by the company’s shares recently. The company provides language technology data and services. It still appears to be trading at a reasonable price despite its recent rally.

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Motley Fool contributor Ryan Newman 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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