Why these 4 ASX shares have been CRUSHED today

Bubs Australia Ltd (ASX:BUB) is one of four ASX shares which have started the week deep in the red. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has been a great start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). The benchmark index hit another 52-week high today and in afternoon trade is up 1.1% to 5,820 points.

Four shares which haven't started the week as strongly are listed below. Here's why they've sunk lower today:

Bubs Australia Ltd (ASX: BUB) shares have fallen almost 18% to 25.5 cents today. The infant formula manufacturer's shares gained 350% at one stage last week following its listing on the ASX via a reverse takeover. Since then profit-taking appears to have started to weigh heavily on its shares. I think it is worth keeping a close eye on, but I wouldn't suggest an investment at the current price.

Fortescue Metals Group Limited (ASX: FMG) shares have dropped 3% to $5.89 after the iron ore price fell sharply on Friday. According to Metal Bulletin the spot iron ore price fell 3.4% to US$76.25 a tonne. There could be more declines to come in the year ahead. Today the Department of Industry, Innovation and Science forecast the iron ore price to fall to US$46.70 a tonne by 2018.

Peninsula Energy Ltd (ASX: PEN) shares have plunged 11% to 67 cents as investors take profit after Friday's massive gain. The uranium mining company's share price jumped 36% on Friday despite there being no news out of it. Unsurprisingly this led to a Price and Volume Query from the ASX. Peninsula's management wasn't aware of any reason for the buying frenzy.

Silver Lake Resources Limited (ASX: SLR) shares have fallen 4% to 71.5 cents. A number of gold miners have sunk lower today despite the gold price holding steady at US$1,175 an ounce. Considering the gold miners rallied strongly ahead of key U.S. data releases on Friday, it would appear as though traders positioned themselves for a jump in the gold price. This didn't materialise and instead the US dollar regained strength.

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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »