MENU

Why these 4 ASX shares have been smashed today

It has been another bitterly disappointing day of trade for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). At the time of writing the index is down 2.1% to 5,923.5 points.

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

The Appen Ltd (ASX: APX) share price is down almost 10% to $11.32. Appen is just one of a number of popular tech shares that have come crashing down to earth on Thursday following the broad market selloff. This is likely to be because as bond yields widen and the risk-free rate increases, investors are less willing to pay over the odds for shares. The good news is that I think Appen’s shares are starting to look reasonably priced now.

The LiveHire Ltd (ASX: LVH) share price has plunged 11% lower to 49 cents. As I mentioned above, tech shares trading on nosebleed valuations have been hit hard today. I’m surprised that LiveHire hasn’t fallen harder given that it finished FY 2018 with annual recurring revenues of just $1.35 million and has a market capitalisation of over $130 million.

The MNF Group Ltd (ASX: MNF) share price has continued its poor run and is down 5% to $4.65. On Wednesday the provider of internet-based telecommunication services released underwhelming guidance for FY 2019 and FY 2020. Management advised that its earnings per share is expected to rise just 7.3% this year before accelerating to between 16.5% and 28% growth in FY 2020. Investors don’t appear to believe that this level of growth justifies the premium its shares trade at.

The Syrah Resources Ltd (ASX: SYR) share price has tumbled 7% to $1.84 following the release of its quarterly update. Today’s update confirmed fourth quarter production targets between 30kt and 35kt, down from its previous target of 63kt. It also advised that it is now targeting positive cash flows from its Balama operations in the first quarter of 2019, rather than late 2018 as previously flagged.

Motley Fool Australia Issues Rare "Double Down" Buy Alert

Scott Phillips has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his 25 years as a professional investor.

This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again. This is your chance to get in early.

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 owns shares of and has recommended MNF Group Limited. The Motley Fool Australia owns shares of Appen 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.

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.