Why these 4 ASX shares have dropped lower

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to build on yesterday’s gain with a solid move higher on Thursday. In afternoon trade the benchmark index is up 0.7% to 6,078 points.

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

The Acrux Limited (ASX: ACR) share price has fallen 3% to 16 cents following the release of its quarterly Axiron sales update. According to the release, Eli Lilly and Company reported global Axiron net sales of US$7.5 million for the December quarter. This compares to sales of US$39.9 million in the prior corresponding period. Eli Lilly terminated its licensing agreement for Axiron late last year following the loss of its patent and concerns over whether testosterone products could lead to an increased risk of heart attack or stroke.

The Godfreys Group Ltd (ASX: GFY) share price has plunged almost 12% to 34 cents after the retailer provided the market with a disappointing trading update. Due to a non-cash impairment of goodwill and intangibles, the company expects to post a first-half net loss after tax of around $59 million. The company also advised that like for like sales for the half-year were 6.2% lower than the prior corresponding period. Considering its poor financial performance, high debt levels, and lack of relevance with consumers, I fear this is a retailer in grave danger of going under.

The Lynas Corporation Ltd (ASX: LYC) share price has fallen over 3% to $2.09. After the market closed on Wednesday management advised that bondholders have converted a further portion of their convertible bonds from debt into equity. This reduced its JARE Facility down to US$170 million, but added a further 13.3 million shares to the registry.

The Virgin Australia Holdings Ltd (ASX: VAH) share price has tumbled 7.5% to 25 cents. I suspect that today’s decline is likely to be related to a broker note out of Credit Suisse. That note revealed that the broker has downgraded the airline from an outperform rating to neutral with a reduced price target of 25 cents.

I would suggest that investors avoid the shares above and buy these top growth shares instead.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean 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 2018."

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%.

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 of the 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.