MENU

Why these 4 ASX shares are sinking lower today

In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course for another day in red. At the time of writing the benchmark index is down 0.1% to 6,181.7 points.

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

The Beadell Resources Ltd (ASX: BDR) share price has dropped almost 6% to 6.5 cents. On Monday the gold miner’s shares surged 21% higher after it announced that it has entered into a scheme implementation deed with US-listed peer Great Panther Silver. Under the terms of the Scheme, Beadell shareholders are to receive 0.0619 common shares of Great Panther for each ordinary share of Beadell. Great Panther shareholders didn’t respond positively to the news and its share price sold off heavily overnight. It finished 10% lower at the close, making the offer less attractive to Beadell shareholders.

The Eden Innovations Ltd (ASX: EDE) share price is down over 6% to 4.5 cents. Eden Innovations’ shares were on fire on Monday and appear to have come under pressure from profit taking today. Its shares rocketed higher after it advised of the first Federal funded highway repair project in the United States to use its EdenCrete product. Management estimates that the job will be worth US$525,000, making it the largest individual contract for EdenCrete to date.

The St Barbara Ltd (ASX: SBM) share price has fallen 4.5% to $3.32. This latest decline means that the gold miner has now lost 20% of its value since this time last month. Investors appear to have been disappointed with its guidance for the year ahead and a weakening gold price.

The Webjet Limited (ASX: WEB) share price has dropped 6% lower to $15.57 despite there being no news out of the online travel agent. However, the majority of Australia’s leading travel shares have tumbled lower today after oil prices surged higher overnight. There may be concerns that increasing fuel costs will hurt consumer confidence and lead to a sharp increase in airfare tickets. While the former could be a problem, I see the latter as a positive for Webjet.

Top Australian Stock Picker Just Issued Rare “Double Down” Buy Alert

Discover why this legendary Australian stock-picker just issued a “Double Down” buy alert to his exclusive group of insiders… and why he’s convinced this might be the single most attractive entry point for years to come.

Simply click here to get started and access our secure sign-up page.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Webjet Ltd. 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!