The Motley Fool

Why Bubs, Incitec Pivot, Paragon Care, & Slater & Gordon shares dropped lower today

In afternoon trade the S&P/ASX 200 index is on course to record a sizeable decline. At the time of writing the benchmark index is down a disappointing 0.5% to 6,570.1 points.

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

The Bubs Australia Ltd (ASX: BUB) share price is down over 4% to $1.18. The catalyst for this decline was the release of its full year results after the market close on Friday. Although the infant formula company delivered a 154% increase in sales to $46.8 million and a 300% jump in gross profit to $9.2 million, investors appear disappointed by its statutory net loss of $35.5 million. It is worth noting that this loss included a $20.4 million non-cash expense for equity linked to the Chemist Warehouse partnership and a series of one-offs.

The Incitec Pivot Ltd (ASX: IPL) share price is down 4% to $3.08. The shares of the manufacturer and distributor of industrial explosives, industrial chemicals and fertilisers crashed lower this morning after it downgraded its full year earnings guidance materially due to tough trading conditions caused by the droughts. At one stage its shares were almost 15% lower at a 52-week low of $2.74.

The Paragon Care Ltd (ASX: PGC) share price has sunk 14% lower to 39.5 cents after the medical equipment supplier’s full year result disappointed investors. Paragon Care posted a 101% increase in revenue from continuing operations to $236.1 million but a 37% decline in net profit after tax to $8.8 million. Earnings per share from continuing operations fell a whopping 70% to 2.7 cents.

The Slater & Gordon Limited (ASX: SGH) share price has crashed 19% lower to $1.22 after returning from its trading halt. This morning the law firm announced the successful completion of the institutional component of its entitlement offer. Slater & Gordon raised approximately $75.6 million at $1.15 per share. It intends to use much of the proceeds to repay its existing $64.4 million syndicated facility in full.

Need a lift after these declines? These top shares could be the ones to do it with.

Our Top 3 Blue Chip Shares for 2019 – NOW AVAILABLE!

You’re invited! For a limited time, The Motley Fool Australia is giving away an urgent new investment report detailing our 3 TOP BLUE CHIP SHARES to own in 2019.

So if you like trustworthy, stable, high-performing companies that pay fat fully franked dividends – we’ve got you covered!

Stock #1 is a beloved old Australian company turning its attention to high-margin businesses... and rapidly returning cash to shareholders with its hefty dividend...

While Stock #2 is an online powerhouse that’s rapidly gaining market share all around the globe... poised for years (or even decades) of tremendous growth...

Even better, Stock #3 offers a whopping 6.5% grossed-up dividend! Which beats the rates on term deposits right out of the water – and offers the potential for capital gains, too.

You can discover all three shares inside our new report right now. To scoop up your FREE copy, simply click the link below right now. But you will want to hurry – this free report is available for a LIMITED TIME ONLY!


Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BUBS AUST FPO and Paragon Care Limited. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.