The Motley Fool

Why these 3 ASX shares are in trading halts

The All Ordinaries (Index: ^AXAO) (ASX: XAO) may be sinking lower on Tuesday, but the three shares listed below have managed to miss out on today’s declines after being placed in trading halts.

Here’s why their shares are halted right now:

Jatenergy Ltd (ASX: JAT)

This energy-cum-infant formula company’s shares have been placed in a trading halt pending an announcement relating to the acquisition of a business. No further details have been provided, but an announcement is expected to be made on Wednesday. The company could potentially be looking to follow in the suit of its peers by acquiring a facility to manufacture its infant formula products. This would, however, be a costly exercise and likely mean it needs to raise funds to do so.

Oliver’s Real Food Ltd (ASX: OLI)

This healthy fast food operator requested a trading halt while it prepares a trading update and revised earnings guidance for FY 2018. Its shares are expected to remain offline until the commencement of trade on Wednesday. Unfortunately I expect this to be an earnings guidance downgrade from Oliver’s as it rarely takes this long to prepare an earnings upgrade. I’m not overly convinced on the viability of the Oliver’s business model and would suggest investors stay clear if it is indeed a downgrade. Especially given how it was only six weeks ago that the company reaffirmed its guidance.

Sirtex Medical Limited (ASX: SRX)

This regenerative medicine company requested a trading halt this morning pending the release of an announcement on material developments in the proposal from CDH. Earlier this month the China-based alternative asset fund manager made an unsolicited non-binding, indicative and conditional proposal to acquire 100% of Sirtex for a cash price of $33.60 per share. As a result of this offer, the company postponed its scheme meeting related to its $28.00 per share offer from Varian Medical Systems. Shareholders will no doubt be hoping that Varian has come in with a better offer or that CDH’s offer has become more concrete.

NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR 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.