MENU

Why these 4 ASX shares are starting the month in the red

The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a mildly positive start to the month and is up 0.1% to 5,833.5 points in afternoon trade.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are starting the month in the red:

The Altura Mining Ltd (ASX: AJM) share price has tumbled 7.5% to 18.5 cents. This morning the lithium miner released its quarterly update. Investors have been hitting the sell button in a hurry despite the company revealing a reasonably positive quarter. During the three months Altura Mining commenced lithium concentrate production and reported consistent recoveries in line with design and DFS forecasts.

The AVZ Minerals Ltd (ASX: AVZ) share price has fallen a further 6% to 6.2 cents. On Wednesday the mineral exploration company released its quarterly update which revealed that its cash and cash equivalents balance is dwindling. After posting an $8.4 million cash outflow from operating activities during the last quarter, AVZ Minerals finished the period with cash and cash equivalents of just $6.5 million. While an offtake deal would be a great funding solution, I suspect that a dilutive capital raising is more likely.

The Lovisa Holdings Ltd (ASX: LOV) share price is down 4% to $7.35. The jewellery retailer’s shares have been extremely volatile this week after the release of a trading update which revealed a decline in same store sales. While I suspect things may get worse before they get better, Lovisa could still be a good long-term investment due to its international expansion plans. But investors may want to hold fire until its half year results release.

The Wagners Holding Company Ltd (ASX: WGN) share price has plunged 15% to $3.59. This morning the construction materials and services business released its annual general meeting presentation which included its outlook for FY 2019. Management expects its first half FY 2019 results to be down on the corresponding period. However, it expects an improvement in the second half, leading to flat year on year earnings.

Need a lift after these declines? Then don't miss out on these top shares that have been tipped for big things.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

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.

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.