The Motley Fool

Why Beach, Pro Medicus, South32, & Wattle Health tumbled lower today

The S&P/ASX 200 index is out of form again on Wednesday and looks set to record a disappointing decline. In afternoon trade the benchmark index is down 0.45% to 6,718.1 points.

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

The Beach Energy Ltd (ASX: BPT) share price has dropped 5% to $2.55. A number of energy shares have come under pressure today after oil prices sank lower overnight. Traders were selling oil after comments out of President Trump sparked concerns of an escalation in the trade war. Trump criticised China’s trade practices at the UN General Assembly overnight and warned that he would not accept a bad deal.

The Pro Medicus Limited (ASX: PME) share price is down almost 6% to $28.09 despite there being no news out of the healthcare software company. However, a number of tech shares have come under pressure today after the Nasdaq index sank lower overnight. The technology-focused index fell 1.5% due to trade war concerns and the launch of an impeachment inquiry targeting President Trump.

The South32 Ltd (ASX: S32) share price has fallen 3% to $2.57. The catalyst for this appears to have been a broker note out of the Macquarie equities desk. According to the note, the broker has downgraded the diversified miner’s shares to an underperform rating and cut the price target on them to $2.60. Its analysts made the move after adjusting their commodity forecasts.

The Wattle Health Australia Ltd (ASX: WHA) share price has dropped almost 6% to 57 cents. Investors appear to be taking profit again after the infant formula company’s shares rocketed higher following the Bellamy’s Australia Ltd (ASX: BAL) takeover approach. Despite falling heavily over the last couple of days, Wattle Health is still valued at ~$110 million. I think this is excessive given that in FY 2019 it posted a 30% decline in revenue to a lowly $1.1 million.

Best Blue Chip Shares to buy in October – 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!

SimplyCLICK HERE FOR YOUR FREE REPORT!

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended Pro Medicus 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.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new 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 2.8% 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.

CLICK HERE FOR YOUR FREE REPORT!