In afternoon trade on Thursday the S&P/ASX 200 index is off its lows but still trading in the red. At time of writing the benchmark index is down 0.1% to 6,129.1 points.
Four shares that have fallen more than most today are listed below. Here’s why they are sinking lower:
The AusCann Group Holdings Ltd (ASX: AC8) share price has crashed 9.5% lower to 33.5 cents. This means that the medicinal cannabis company’s shares have lost almost half of their value since the start of the year. I suspect the loss of a competitive edge and the lack of revenue generation is weighing on its shares. One person that sees this as a buying opportunity is acting CEO, Dr Paul MacLeman. According to a change of director’s interest notice filed last night, he picked up 30,268 shares through an on-market trade on Monday.
The Bellamy’s Australia Ltd (ASX: BAL) share price has dropped almost 3% to $10.89 despite there being no news out of the infant formula company. However, prior to today the Bellamy’s share price was up 37% in the space of just one month. I suspect that this could mean that some investors are taking a bit of profit off the table today.
The Eclipx Group Ltd (ASX: ECX) share price is down 4% 67.2 cents. The fleet management company’s shares rocketed an incredible 25% higher on Wednesday after bargain hunters swooped in following a sudden and sharp decline. It looks as though some of these investors have decided to sell shares today in order to make a quick profit. Despite yesterday’s gain, the Eclipx share price has lost two-thirds of its value since the start of the year.
The QANTM Intellectual Property Ltd (ASX: QIP) share price has dropped 3.5% to $1.36 after the ACCC advised that it would not oppose the potential acquisition of Xenith IP Group Ltd (ASX: XIP) by rival intellectual property services company IPH Ltd (ASX: IPH). The competition watchdog advised that most customers it consulted “did not express concerns.” QANTM IP is hoping to merge with Xenith IP.
Instead of AusCann, I think investors ought to take a look at this buy-rated share.
A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming. To the tune of an estimated $US22 billion.
Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.
Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.
AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended IPH Ltd. The Motley Fool Australia has recommended Bellamy's Australia. 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.