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Why these 4 ASX shares sank like stones today

It has been another disappointing day for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) on Thursday. In afternoon trade the index is down 0.5% to 6,064 points.

Four shares falling more than most today are listed below. Here’s why they have sunk like stones:

The Auscann Group Holdings Ltd (ASX: AC8) share price is down a further 10% to $1.46. Traders appear to be taking profit after pot stocks rocketed higher following changes to medicinal cannabis export regulations by the Federal Government. AusCann’s shares are still up 78% year-to-date even after two consecutive days of heavy declines.

The Blackmores Limited (ASX: BKL) share price has fallen almost 6% to $153.75 despite there being no news out of the health supplements company or broker notes that I am aware of. While the sell-off is disappointing for existing shareholders, I think it could be an opportunity for non-shareholders to get hold of its shares at a fairer price.

The Carsales.Com Ltd (ASX: CAR) share price is down 5% to $14.27 following the release of a negative broker note out of Credit Suisse. According to the note, the broker has downgraded Carsales.com’s shares to an underperform rating from neutral. Last month UBS also downgraded the car listings company’s shares to a sell rating amid concerns that too much growth had been baked into its share price.

The Galaxy Resources Limited (ASX: GXY) share price has plunged over 7% to $4.13. The majority of the lithium miners have sunk lower today as traders take profit off the table. Prior to today Galaxy Resources’ shares had gained over 30% in the space of just one month. I think the lithium miner is a great long-term investment option, but I would hold off an investment until things settle.

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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended carsales.com Limited. 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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