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Why these 4 ASX shares plunged lower today

The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is having a day to forget and is down a sizeable 0.8% to 6,033 points in afternoon trade.

Four shares that have fallen more than most today are listed below. Here’s why they have plunged lower:

The Amaysim Australia Ltd (ASX: AYS) share price has fallen almost 18% to 80 cents despite there being no news out of the junior telco company. I suspect that many investors have come to the realisation that Amaysim is likely to be one of the worst impacted telcos by the arrival of TPG Telecom Ltd (ASX: TPM) in the mobile market. I fear its business model is now broken and would suggest investors stay well clear of it.

The APN Outdoor Group Ltd (ASX: APO) share price is down 4% to $5.08 after it was revealed that the outdoor advertising company is looking to acquire the Adshel business from HT&E Ltd (ASX: HT1) for an enterprise value of $500 million. Shareholders appear to believe that the company is paying too much for the asset.

The Healthscope Ltd (ASX: HSO) share price has dropped 3.5% to $2.37 after the private hospital operator downgraded its earnings guidance and refused to give its suitors due diligence access. Instead, the company will look at the merits of a sale and leaseback transaction with a view to unlocking value for Healthscope shareholders in the future.

The Technology One Limited (ASX: TNE) share price has tumbled over 6% to $4.64 after the enterprise software company’s first half results fell short of the market’s expectations. Despite strong growth from its Cloud business, Technology One delivered earnings per share of 2.55 cents compared to expectations of 2.8 cents. This was just a 2.4% increase on the prior corresponding period. I still think its shares are expensive after today’s decline and would suggest investors wait for a better entry point.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended TPG Telecom 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.

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