Earlier today I looked at three small cap shares that had defied the market selloff and pushed higher.
As you might expect, those shares were the exception on a very bleak day of trade. Three small cap shares that have gone the other way with the market are listed below. Here's why they have plunged lower:
The Argosy Minerals Limited (ASX: AGY) share price has plunged 8% lower to 23 cents despite the lithium company providing a positive update on its Rincon lithium project in Salta Province, Argentina. According to the release, Argosy Minerals has upgraded its indicated mineral resource estimate to 245,120 tonnes of lithium carbonate at a vertical depth of 102.5 metres. Management believes the new indicated resource will support its "project production targets and long-term mine life estimates", which will be outlined further in its upcoming Preliminary Economic Assessment. I suspect its shares have sunk lower today due to investors going into risk-off mode.
The Audio Pixels Holdings Ltd (ASX: AKP) share price is down almost 7% to $17.90 despite there being no news out of the digital speaker developer. But considering high risk and high PE tech shares have been sold off today, I can't say I'm surprised to see the Audio Pixel's shares price tumble lower. The company has been developing its speakers for many years and has little to show for it other than a large number of capital raisings and significant shareholder dilution.
The Freelancer Ltd (ASX: FLN) share price has fallen 8.5% to 80 cents after getting caught up in the tech selloff. Despite this sharp decline, the crowdsourcing marketplace operator's shares are up by 67% since the start of the year. Investors have been fighting to get hold of Freelancer's shares since its third quarter update revealed a significant improvement in its performance. Both its Freelancer.com and Escrow.com businesses were EBITDA positive during the quarter.
