MENU

Why these 4 ASX shares have started the week with HUGE declines

The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a great start to the week and in afternoon is up 0.7% to 5,775 points.

Unfortunately not all shares have been able to follow the market higher today. In fact, four shares in particular have started the week with huge declines. Here’s why:

The Auscann Group Holdings Ltd (ASX: AC8) share price has tumbled almost 10.5% to 51.5 cents. Today’s decline is likely to relate to last week’s capital raising. On Friday the medicinal cannabis company secured a $12 million institutional placement at 50 cents per share. These funds will be put towards the development of cultivation and manufacturing activities, as well as accelerating its medical outreach programme.

The Murray River Organics Ltd (ASX: MRG) share price has fallen an incredible 41% to 36.7 cents after the organic food company downgraded its full-year guidance for the second time this month. Due to unfavourable weather and the impact it has had on its harvest, management expects net profit after tax of between $100,000 and $800,000. Previous guidance had been for $6.6 million. This is one to avoid in my opinion.

The PAS Group Ltd (ASX: PGR) share price has dropped 14% to 50 cents after the retailer provided a disappointing trading update. Lower traffic and an elevated promotional environment has led to a drop in sales from its Black Pepper and Review brands. As a result management expects a weaker second-half performance. Like most retailers, I would avoid PAS Group for the time being.

The Surfstitch Group Ltd (ASX: SRF) share price has plunged 30% to 6.9 cents after the surf wear retailer downgraded its full-year earnings guidance. Management advised that it expects to report an EBITDA loss of between $10.5 million and $11.5 million for the full-year following weak trading conditions in key markets. This is another retailer I would give a wide berth to.

If your portfolio took a hit today don't worry. These high-flying shares could be just what it needs to take it to the next level in my opinion. I'm tipping them for BIG things this year.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

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.