The S&P/ASX 200 index may have closed at a record high on Wednesday, but not all shares are in such good form.
In fact, a number of shares touched on 52-week lows or worse yesterday. Here's why these ASX shares are down in the dumps:
AusCann.
The AusCann Group Holdings Ltd (ASX: AC8) share price sank to a joint all-time low of 20 cents on Wednesday. This means the cannabis company's shares are now trading at the same price they listed on the ASX at back in 2017. This is a long way from the highs of 2018 when AusCann's shares were trading close to $1.80. Investors appear to be losing patience with the industry amid low revenues and high levels of competition. In addition to this, an oversupply of cannabis and lower than expected demand is also weighing on industry sentiment.
Bank of Queensland.
The Bank of Queensland Limited (ASX: BOQ) share price fell to a multi-year low of $7.75 yesterday. The regional bank's shares have come under pressure this week after launching a $275 million capital raising. These funds will be used to strengthen its balance sheet and increase its CET1 ratio. Outside this, investors have been selling its shares due to its very poor performance in FY 2019 and guidance for a further decline in earnings in the new financial year. This has sparked fears that yet another dividend cut will be coming in 2020.
Syrah Resources.
The Syrah Resources Ltd (ASX: SYR) share price continued its slide and hit a multi-year low of 36 cents on Wednesday. Investors have been selling the graphite miner's shares this year due to a collapse in the price of the battery making ingredient. Prices have weakened so much that it was costing Syrah more to produce its graphite than it was receiving for it. As a result, it has decided to cut its production materially in 2020. It appears optimistic this will help with oversupply issues, support prices, and conserve capital.
