Why these 4 ASX shares sank like stones today

So far it has been another solid day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is higher by 1% to 5,469 points.

Unfortunately not all shares are climbing higher today though. Four shares in particular have made notably sharp declines. Here’s why they’ve sunk…

CYBG PLC CDI 1:1 (ASX: CYB) shares are down 3.5% to $4.72 following the release of the bank’s preliminary full year results after the market closed yesterday. Although the bank has delivered its first statutory profit before tax in five years, the market doesn’t appear to be overly impressed. With management admitting that the full impact of Brexit is not yet fully understood, investors might be better off giving CYBG a wide berth for now.

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has fallen 7% to $7.73 a day after delivering a record half-year profit. A research note out of Deutsche Bank reveals that its analysts downgraded the respiratory care device provider to a hold rating due to concerns over its ongoing legal battle with rival ResMed Inc. (CHESS) (ASX: RMD) over patent infringements. I believe the company looks attractive at this price, but would suggest investors hold out until the legal matter is resolved.

Resolute Mining Limited (ASX: RSG) shares have dropped 3% to $1.27 after the gold price gave back some of yesterday’s gains. At lunch the spot gold price had fallen to US$1,205 an ounce, down 1.2% from yesterday’s high. With a December rate hike in the United States looking a near certainty now, I would not be surprised to see the gold price fall below US1,200 an ounce in the next couple of weeks.

Vita Group Limited (ASX: VTG) shares have continued to fall, this time by 3.5% to $2.90. This now means the retailer’s shares have lost over 40% of their value in the last 30 days. The drop appears to relate to fears over the new terms being negotiated for the retail stores it operates on behalf of Telstra Corporation Ltd (ASX: TLS). Whilst at 12x full year earnings it looks to be a bargain, investors might be best waiting for the new terms to be announced before jumping in.

If your portfolio took a hit today from these declines then repair that damage with this hot stock. The smart money is on this one being a big winner in 2017.

Big, Fat, Dividends

This company's dividend is almost the stuff of legends. Its reliable cash flows support a high payout ratio, and the company's stash of franking credits are the cherry on the top of the dividend cake. Based on the last 12-months of dividends, shares are offering a fully-franked 6.5% yield, which grosses up to a whopping 9.3%, when those franking credits are included.

Discover out the name of this blue chip share along with 2 others in our new FREE report "The Motley Fool's Top 3 Blue Chips Stocks For 2017."

Click here to receive your copy.

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.

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.