MENU

Why these 4 ASX shares sank lower today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) on course to make it two successive days of gains. In afternoon trade the index is almost 0.4% higher at 6,058 points.

Four shares which haven’t been able to follow the market higher today are listed below. Here’s why they have sunk lower:

The Galaxy Resources Limited (ASX: GXY) share price is down almost 2% to $3.53. This morning the lithium miner was downgraded to an underperform rating by equity analysts at Macquarie. Furthermore, the broker has slapped a $3.00 price target on its shares. This is due largely to its belief that from 2019 lithium prices may come under pressure as supply outstrips demand.

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 2% to 67.2 cents. The pharmaceutical company’s shares had been on a tear up until this week and have now given back the majority of their year-to-date gains. Investors appear nervous ahead of earnings season due to the pricing pressures it has faced. Industry giant Teva Pharmaceuticals will report its earnings on February 8, this should give investors an idea of what to expect from Mayne Pharma.

The Murray River Organics Ltd (ASX: MRG) share price has plunged almost 8% to 36 cents. This morning the healthy snacks company announced another surprise write-down. A recent stocktake uncovered further shortcomings by previous management with the quality and categorisation of dried vine fruit which has been previously identified and reported on. This has led to a $4 million write-down on top of its previously announced $4.3 million write-down. I would stay clear of Murray River Organics.

The St Barbara Ltd (ASX: SBM) share price is off almost 4% to $3.70. Although many of the gold miners have pushed higher today, St Barbara has fallen into the red following a broker downgrade. Credit Suisse has downgraded the gold miner to a sell rating with a $3.00 price target on valuation grounds.

St Barbara may be a sell, but these hot tech shares are strong buys in my opinion.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We're living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That's why at The Motley Fool we've been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We've found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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.