MENU

Why these 4 ASX shares are tumbling lower today

In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has continued its stellar run and is up a further 0.6% to 6,049.7 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they have tumbled lower:

The Avz Minerals Ltd (ASX: AVZ) share price has plunged over 10.5% to 17 cents. The lithium-focused mineral exploration company appears to have fallen out of favour with investors since it confirmed last month that one of its paid advisors had leaked on-site images through social media. I don’t believe the company handled the situation very well at all and wouldn’t class it as investment grade.

The Gateway Lifestyle Group (ASX: GTY) share price has tumbled 10% to $1.78 after the residential park developer warned that settlements would be lower than expected in FY 2018. Due to moderating conditions in the housing market and the lengthening of the time it takes to sell homes, Gateway expects new home settlements in a range of 230 to 240, compared to previous guidance of around 250 settlements for the full year.

The InvoCare Limited (ASX: IVC) share price has dropped 5.5% to $12.35 after the funerals company downgraded its full-year profit guidance. According to the release, a weak first-half performance is likely to lead to a low single digit decline in earnings per share compared to FY 2017. Previous guidance had been for flat earnings per share. With its shares changing hands at 21x trailing operating earnings, I think InvoCare is still overvalued even after today’s decline and taking into consideration its defensive qualities.

The JB Hi-Fi Limited (ASX: JBH) share price has slumped 8% lower to $23.52 after the retailer downgraded its net profit after tax guidance. Due to unfavourable weather conditions and heightened price competition, the company’s Good Guys business saw third-quarter sales decline. In order to compete management has opted to cut prices at the expense of margin, leading to a full-year net profit after tax guidance downgrade to $230 million from between $235 million to $240 million. I would stay clear of JB Hi-Fi I don’t expect conditions to ease in the short term.

Instead investor might be better off considering these market-beaters ahead of JB Hi-Fi.

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 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.