Why these 4 ASX shares have dropped lower today

The Blue Sky Alternative Investments Ltd (ASX:BLA) share price is one of four dropping notably lower today. Here's why…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has continued its strong run and is up 0.3% to 6,104 points in afternoon trade.

Unfortunately, not all shares on the market have been able to follow the market higher today. Four shares which have dropped notably lower are listed below:

The Baby Bunting Group Ltd (ASX: BBN) share price has fallen almost 3.5% to $1.31 after the baby products retailer downgraded its earnings guidance due to the distressed trading of competitors and the liquidation of their stock. Baby Bunting now expects FY 2018 EBITDA to be in the range of $18 million and $20 million. Previous guidance was for EBITDA of around $23 million. I expect the company to return to growth in FY 2019 and think investors ought to consider buying on this weakness.

The Blue Sky Alternative Investments Ltd (ASX: BLA) share price has continued its decline and is down a further 5.5% to $2.36. On Monday the embattled asset manager surprised the market when it withdrew its guidance for FY 2018. In addition to this, yesterday's update revealed that the company has been charging fees on undrawn debt facilities.

The Fleetwood Corporation Limited (ASX: FWD) share price has plunged over 16% to $1.89 after releasing an earnings update. According to the update, the accommodation solutions and recreational vehicle company expects full year underlying EBIT of approximately $5.5 million. Previous guidance has been for full year EBIT marginally ahead of the $14.6 million it achieved in FY 2017. Ongoing losses in its Caravan Manufacturing business are partly to blame.

The Murray River Organics Ltd (ASX: MRG) share price has tumbled over 18% to 27 cents after the organic products company downgraded its earnings guidance yet again. Murray River Organics has only been listed on the ASX for 18 months, but I've already lost count of how many times it has cut its guidance. Unsurprisingly it is trading well below its listing price of $1.30. In my opinion its shares are simply not investment grade.

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.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »