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Why these ASX shares crashed to 52-week lows or worse this week

Share price plummet
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Earlier today I looked at a few shares that have just raced to 52-week highs or better.

Unfortunately, not all shares on the market have been enjoying such good form. In fact, the three shares below have hit 52-week lows or worse this week.

Here’s why they are down in the dumps:

The Cann Group Ltd (ASX: CAN) share price is down to a two-year low of 95 cents on Friday. This latest decline means the cannabis company’s shares are down 40% this month and 58% over the last 12 months. Investors appear to be selling its shares due to concerns over the oversupply of dry cannabis flower. This is particularly bad news for Cann as it has invested huge sums of money in growing facilities in Victoria. Cann isn’t the only cannabis share hitting a 52-week low this week. Cann Global Ltd (ASX: CGB) and Creso Pharma Ltd (ASX: CPH) also achieved this unwanted milestone. Elsewhere, Auscann Group Holdings Ltd (ASX: AC8) is just a fraction off its own 52-week low.

The Citadel Group Ltd (ASX: CGL) share price has continued its slide and hit a multi-year low of $3.29 today. Investors have been selling the information management specialist’s shares due to its disappointing performance in FY 2019. During the 12 months Citadel posted a 7% decline in total revenue to $99.2 million and a 44% drop in net profit to $10.9 million. This was blamed on delays in project extensions and lower customer spends due to the federal election. Next week the company is scheduled to hold its annual general meeting. Judging by its share price weakness, it appears as though some investors aren’t confident that it will come bearing good news.

The Galaxy Resources Limited (ASX: GXY) share price has fallen to a multi-year low of 82 cents on Friday. This comes a day after the release of its quarterly update. Although the lithium miner did not disclose the price it was receiving for its produce, I feel it is safe to say that prices have continued to weaken. Especially after management advised that it would almost halve its production in FY 2020 in response to tough market conditions. Also dropping to a multi-year low was Pilbara Minerals Ltd (ASX: PLS). Unfortunately for these two miners, lithium prices are expected to stay subdued in the near term.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Citadel Group 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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