Why Galaxy Resources and these ASX shares just crashed to 52-week lows

The Galaxy Resources Limited (ASX:GXY) share price is one of three trading at a 52-week low or worse right now…

a woman

The local share market may be trading at multi-year highs, but not all shares have been able to follow it higher.

In fact, a number of shares are trading at 52-week lows or worse. Here's why they are down in the dumps:

The Link Administration Holdings Ltd (ASX: LNK) share price sank to an all-time low of $5.32 on Thursday. The administrations services company's shares have come under significant selling pressure after the recent release of a disappointing trading update. Due to a number of factors, but predominantly the negative impact of Brexit on its UK-based business, the company revealed that it expects to report operating NPATA of between $195 million and $205 million in FY 2019. This compares to $206.7 million in FY 2018.

The Galaxy Resources Limited (ASX: GXY) share price tumbled to a multi-year low of $1.29 yesterday. This lithium miner's shares have crashed lower over the last 12 months due to further weakness in lithium prices due to increasing supply and subdued demand. Unfortunately for Galaxy and its lithium peers, prices have been tipped to continue their decline over the remainder of 2019. Another catalyst for this share price weakness was news that Galaxy was unable to find a joint venture partner for its Sal de Vida asset.

The Reject Shop Ltd (ASX: TRS) share price continued its slide and hit a multi-year low of $2.00 on Thursday. The discount retailer's shares were hammered when it revealed that tough trading conditions had led to its sales falling well below expectations. Furthermore, Reject Shop warned that its gross margin had fallen because the expected benefits from initiatives failed to land with consumers. This ultimately led to the embattled retailer downgrading its full year guidance to a loss after tax of between $1 million and $2 million, compared to prior guidance of net profit after tax of between $3.1 million and $4.1 million.

James Mickleboro owns Galaxy shares. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Link Administration Holdings Ltd. The Motley Fool Australia has recommended Link Administration Holdings 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.

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