Why these 4 ASX shares are sinking lower today


The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has built on yesterday’s gain with a 0.6% push higher to 6,079 points.

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

The Bubs Australia Ltd (ASX: BUB) share price has fallen 6% to 93.5 cents despite there being no news out of the goat milk infant formula company. I suspect that today’s decline could be a case of profit-taking ahead of tomorrow’s half-year results release. Bubs’ shares have risen sharply over the last week after an announcement of a major new distribution agreement with e-commerce giant I would suggest investors resist buying the dip and wait for its results.

The Monash IVF Group Ltd (ASX: MVF) share price has fallen 3.5% to $1.18 a day after the release of a disappointing half-year result. The weak first-half led to analysts at Morgans downgrading the fertility company’s shares from an add rating to hold. The broker also slashed its price target from $1.52 to $1.25. Although Monash IVF looks cheap, I am concerned that it could prove to be a value trap.

The Orocobre Limited (ASX: ORE) share price has plunged 5.5% lower to $6.57 after Morgan Stanley warned of a potential oversupply of the metal in the future. Morgan Stanley believes that increased production from projects in Argentina and Australia could add an additional 500,000 tonnes of supply to the market by 2025. At present annual supply stands at approximately 215,000 tonnes.

The Speedcast International Ltd (ASX: SDA) share price has fallen 6.5% to $5.21 following the release of its half-year results. Despite the provider of satellite-based communication networks and services more than doubling its underlying profits, investors appear to have been expecting more or a stronger full-year outlook. Whilst I was impressed with Speedcast’s result, I think its shares are a little on the expensive side.

So instead of buying Speedcast, I would buy these growth shares which I think are reasonably priced right now.

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 recommended Monash IVF Group Ltd. 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.