4 stocks sinking on the ASX today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) looks headed to end the week on a negative note, down 0.8% at 5,371.7 points in late afternoon trading.

It’s been a dismal week, with losses of 2.6% so far, despite a brief bounce on Tuesday.

Luckily, it’s not as bad as these four companies which have seen their share prices sink much further…

Select Harvests Limited (ASX: SHV) has dropped 6.9% to $6.20. The almond producer saw its share price rise 7.6% earlier this week, perhaps as bargain hunters jumped in. Today’s share price might indicate that they are now exiting the stock and taking profits – or it could also be the fact the company is being removed to the S&P/ASX 200 in September, after S&P Down Jones Indices announced changes today. As the main index, many fund managers are prohibited from investing outside it and could sell off their holdings.

Cover-More Group Ltd (ASX: CVO) has seen its share price sink 4.8% to $1.38. The travel insurance company is also being removed from the S&P/ASX 200 and some fund managers who are holding shares in the company could be forced to sell over the coming two weeks. Other investors appear to be getting out now and taking whatever they can get before the price sinks much further.

Japara Healthcare Ltd (ASX: JHC) has lost 4.2% to $2.06 and more than 20% of its value in the past month, as investors worry about the impact of cuts to government funding for the aged care sector. Aged care providers like Japara generate most of their revenue from government funding sources, and it was inevitable that the government was going to cut back funding and tighten rules after audits revealed a high level of issues in claims by the industry.

Catapult Group International Ltd (ASX: CAT) fell 3.9% to $3.66, and has now lost 9% in the past week. The company provides athlete monitoring equipment, both hardware and software to a large number of high-profile sports teams around the world. Despite posting a recent net loss, Catapult has recorded strong sales growth and it likely won’t be too long before the company reports its maiden profit. As colleague Tom Richardson wrote here – It could be the champion stock of 2017 – despite today’s pullback.

How 1 Man Turned $10,600 Into Over $8 Million in the stock market

Discover how one man turned a modest $10,600 investment into an $8,016,867 fortune. Learn more about this man and how you can start down the path toward financial independence. Simply click here to learn more. No credit card required - this is free!

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.

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.