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Why these 4 ASX shares have been hit for six today

It hasn’t been a great start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In early afternoon trade the benchmark index has dropped lower by 0.4% to 5,632 points.

Although a vast number of shares have sunk lower today, the four shares below have stood out with particularly bad starts to the week. Here’s why:

Bellamy’s Australia Ltd (ASX: BAL) shares have fallen over 3% to $3.88 after IMF Bentham Ltd (ASX: IMF) announced plans to fund a class action against the infant formula manufacturer. The embattled Slater & Gordon Limited (ASX: SGH) is expected to conduct the class action. The claims relate to alleged misleading or deceptive conduct and an alleged breach of its continuous disclosure obligations.

Brambles Limited (ASX: BXB) shares have plunged over 15% to $10.38 after the operator of the world’s largest pallet pool advised the market that it would fall short of its full year guidance. This is the result of a disappointing performance from its North American business thanks to revenue and cost pressures from US retailers destocking. Management will reveal its downgraded result next month in its half-year results.

Mcgrath Ltd (ASX: MEA) shares have plummeted 10% to 77 cents after the real estate agent warned that low listing volumes in Sydney are impacting its business. As a result management expects a far weaker second half, which may make Bell Potter’s full year EBITDA estimate of $20.9 million unachievable.

Village Roadshow Ltd (ASX: VRL) shares have dropped almost 10% to $4.02 after the media and entertainment company advised that its theme parks were experiencing lower visitor numbers following the tragic incident at rival theme park Dreamworld. Although international and inter-state visitors were in line with last year, the key local Queensland market has seen a 12% drop in attendances since the accident. At the current price I feel Village Roadshow could be in bargain territory.

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Returns as of 27th November

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.

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