The Motley Fool

Here’s why these 4 ASX shares dropped today

It is looking likely to be a strong end to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). Following in the footsteps of international markets, the benchmark index has risen 1% to 5,290 points in early afternoon trade.

It hasn’t been good news all round though unfortunately. The following four shares had a bad end to the week and dropped sharply. Here’s why:

Mesoblast limited (ASX: MSB) shares have dropped 3% to $1.20 possibly due to the fact its shares will be removed from the S&P/ASX 200 when the index is rebalanced after the market closes today. This is the latest setback in what has proven to be a difficult year for shareholders. Year-to-date its share price has dropped by around 35% now.

Mitula Group Ltd (ASX: MUA) shares have plunged 6% to $1.08 following a block trade of its shares executed by Australian broker Baillieu Holst. According to the market release, entities associated with Mitula’s majority shareholders and founders agreed to sell approximately 25.5 million shares to institutional investors. Whilst nobody likes to see founders sell shares, management believes it represents a critical step to increasing the liquidity of its shares.

Netcomm Wireless Ltd (ASX: NTC) shares are down by 3% to $2.89 despite no news out of the developer and supplier of broadband products. After a strong 12 months which saw Netcomm’s share price climb by around 200% its shares have started to fall out of favour. Personally, I fear there may be further to fall. Its recent full year results were a big disappointment and this leaves its shares trading at 193x earnings.

Resolute Mining Limited (ASX: RSG) shares are lower by 4% to $2.01. Resolute Mining is just one of a good number of Australian gold producers which are dropping lower today after the gold price dropped to a two-week low on Thursday. Despite the release of weak economic data in the United States, traders are still concerned that the Federal Reserve may raise rates at its FOMC meeting next week and cause the gold price to plunge.

If your portfolio took a hit today then an investment in these three fantastic shares could be just what you need. Each has the quality to rocket higher in the next few months in my opinion.

Why These 3 Blue Chip Shares Are Set to Soar in 2016

Discover The Motley Fool's Top 3 blue chips for 2016. These 3 'new breed' shares pay fully franked dividends AND offer the prospect of significant capital appreciation. Simply click here to gain access to this comprehensive FREE investment report.

No credit card required!

Motley Fool contributor James Mickleboro 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.