These small cap stars have been crushed today

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may have fallen a disappointing 2.9% during morning trade, but this is nothing compared to some of the declines being seen in the small cap space.

Below are a few of the biggest declines being seen amongst the most popular small cap shares today:

  • The Auscann Group Holdings Ltd (ASX: AC8) share price is down 10% to $1.30.
  • The Big Un Ltd (ASX: BIG) share price is off 6% to $2.89.
  • The Bubs Australia Ltd (ASX: BUB) share price is lower by 5.5% to 68 cents.
  • The Fastbrick Robotics Ltd (ASX: FBR) share price is down 6% to 15 cents.
  • The LiveHire Ltd (ASX: LVH) share price has fallen 7.5% to 93.5 cents.
  • The LiveTiles Ltd (ASX: LVT) share price is lower by 7% to 45 cents.
  • The Oliver’s Real Food Ltd (ASX: OLI) share price is down 8% to 23 cents.
  • The Probiotec Limited (ASX: PBP) share price is off by almost 8% to 84 cents.
  • The SKY and Space Global Ltd (ASX: SAS) share price has sunk 9% to 15 cents.
  • The Wattle Health Australia Ltd (ASX: WHA) share price is down 9% to $2.08.
  • The Yojee Ltd (ASX: YOJ) share price has fallen 5% to 18.5 cents.

Why have small cap shares fallen today?

With the market well and truly in panic mode, a lot of the higher risk shares are coming under significant selling pressure today.

Small cap shares are certainly high on the risk spectrum, especially given some of the high valuations that these shares trade at.

Should you buy the dip?

I feel a lot will depend on what happens overnight in U.S. markets. If U.S. markets recover and the bull market continues, then a lot of these small cap shares could recover also.

But if there are signs that the bull market has come to an end, then I fear that investors will become far more conservative and unwilling to pay over the odds for growth. In light of this, I would suggest investors keep their powder try for the time being and consider taking some profit off the table if they already hold them.

However, it isn't all doom and gloom on the market. Here are three exciting shares that I do think are in the buy zone today.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended LIVETILES FPO. 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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