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Here’s why these 4 ASX shares are getting smashed today

So far today the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) hasn’t been able to build on yesterday’s strong gains. In afternoon trade the index is down by 0.2% to 5,417 points, with the majority of sectors heading lower.

Four shares which have dropped significantly are as follows:

Altium Limited (ASX: ALU) shares are down around 6% to $9.32 today following the release of a research note out of global investment bank UBS. The note revealed that its analysts had downgraded the printed circuit board software provider from a buy to a sell, but maintained its $9.05 price target. The downgrade was done for valuation reasons, with analysts believing its share price had got a little ahead of itself. I believe this sell off brings its shares down to a great entry price for investors.

Alumina Limited (ASX: AWC) shares have dropped over 3% to $1.44 today despite no further news out of the company. Considering its shares had rallied over 15% since it settled its dispute with US-based mining giant Alcoa over their Australian joint venture on Friday, I wouldn’t be surprised if there’s a spot of profit taking going on today.

Cover-More Group Ltd (ASX: CVO) shares are down in the dumps once again, this time the travel insurance provider’s share price has dropped almost 5% to $1.30. This means that Cover-More’s shares have now dropped by over 9% since it was announced on Friday that it was being removed from the S&P/ASX 200 index at the next quarterly rebalance on September 16.

Doray Minerals Limited (ASX: DRM) shares have dropped 5% to 73 cents after the Australian gold producer released a project update and production guidance to the market. It would appear as though the market was disappointed with its combined production guidance of 105,000 to 120,000 ounces and an all-in sustaining cost of between $1,300 and $1,400 an ounce. These costs seem quite high to me and will no doubt be a squeeze on margins.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Altium. 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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