Why these 4 ASX shares are sinking like stones today

In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is down a disappointing 0.25% to 5,737 points.

Four shares that have weighed heavily on the market today are listed below. Here’s why they have sunk like stones:

The Afterpay Touch Group Ltd (ASX: APT) share price has fallen almost 7% to $5.60 despite the release of a company update this morning. That update attempted to quash any concerns the market had over its business model and planned insider selling. Although Afterpay’s shares initially rebounded, the bounce has proven to be only short-lived.

The Blue Sky Alternative Investments Ltd (ASX: BLA) share price returned to trade today and is down a sizeable 18% to $8.56. Blue Sky provided a rebuttal to a note out of Glaucus last week alleging that it was overvaluing assets and returns. Blue Sky’s response doesn’t appear to have convinced investors to stick with the company. I would suggest that investors stay well clear of Blue Sky whilst this saga is ongoing.

The G8 Education Ltd (ASX: GEM) share price is down 10% to a multi-year low of $2.34. Today’s decline appears to relate to a broker note out of Morgan Stanley this morning. That note revealed that its analysts had downgraded the childcare operator to an equal-weight rating and slashed the price target on its shares from $4.25 to $2.80.

The Lovisa Holdings Ltd (ASX: LOV) share price has tumbled 8% to $9.21 after the shock resignation of the fashion jewellery company’s CEO. According to the release, Steve Doyle has resigned as the company’s CEO to pursue other interests and will be stepping down from the role on April 20. The good news is that this resignation clearly isn’t performance related. Management provided a trading update which revealed that its growth has accelerated since its half-year results. Investors may want to consider buying on this weakness.

Need a lift after these declines? Then don't miss these top stocks.

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 owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended G8 Education 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 Scott Phillips.

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.