The Motley Fool

Why Cann, Novonix, Paradigm, & Tower shares are sinking lower

The S&P/ASX 200 index has followed the lead of U.S. markets and is dropping lower today. At the time of writing the benchmark index is down 0.15% to 6,719.8 points.

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

The Cann Group Ltd (ASX: CAN) share price has continued its slide and is down a further 6% to 38.5 cents. At one stage today the cannabis company’s shares hit a record low of 37.5 cents. When they reached that level it meant they were down over 81% since the start of the year. The market appears concerned with Cann’s prospects due to an oversupply of cannabis.

The Novonix Ltd (ASX: NVX) share price has fallen 5.5% to 59.5 cents. This is despite the company announcing on Monday that it has signed a conditional agreement to supply lithium-ion battery anode material to Samsung SDI. It is a South Korea-based an international manufacturer of lithium-ion batteries. In response to this news, this morning Morgans upgraded its shares to a speculative buy with a 90 cents price target.

The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price is down 4.5% to $3.41 despite there being no news out of the biopharmaceuticals company. However, its shares have been on fire in 2019. So, this decline could be due to profit taking from some investors. Prior to today, Paradigm’s shares were up 260% since the start of the year.

The TOWER Limited (ASX: TWR) share price has fallen almost 3% to 71 cents. This follows the announcement that the New Zealand-based insurance company’s CEO, Richard Harding, will not be extending his contract. He intends to exit the role in 2020 and return to Australia. The Tower board has now started a global search for a new CEO and will consider internal applicants.

These 3 stocks could be the next big movers in 2020

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

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

Related Articles...

Latest posts by James Mickleboro (see all)