Why a2 Milk, Aurelia Metals, Dubber, & Freelancer shares are sinking

It hasn’t been a great day for these ASX shares…

| More on:
shocked man looking at laptop with declining arrows in the background showing a falling share price

Image source: Getty Images

The S&P/ASX 200 Index (ASX: XJO) is on form on Tuesday and charging higher. In afternoon trade, the benchmark index is up 0.6% to 7,436.6 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price has fallen 5% to $6.08. Investors have been selling this embattled infant formula company’s shares this week amid concerns over potential regulatory changes in China. This follows sweeping changes to a range of other sectors recently. There are fears that the government may look to favour domestic producers over brands like a2 Milk.

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price has crashed 16% to 40.5 cents. This is despite the gold miner delivering on its production guidance and beating its cost guidance in FY 2021. Investors may be disappointed with its outlook, which is guiding to a large increase in costs in FY 2022. Its all-in sustaining cost (ASIC) is expected to be $1,500 to $1,700 per ounce of gold, compared to $1,337 per ounce in FY 2021.

Dubber Corp Ltd (ASX: DUB)

The Dubber share price has fallen 5.5% to $3.02 after returning from its trading halt. This morning the call recording technology company announced the successful completion of its $110 million capital raising. Dubber raised the funds through an institutional placement at $2.95 per share. This represents a discount of 7.8% to its last close price. The proceeds will be used to accelerate its growth objectives and advance M&A opportunities.

Freelancer Ltd (ASX: FLN)

The Freelancer share price has sunk 16% to 95 cents following the release of its first half results. The freelance and outsourcing marketplace provider reported a 5.7% decline in half year revenue to $27.8 million. This ultimately led to a $1.6 million operating loss after tax and weaker cash flows.

Wondering where you should invest $1,000 right now?

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.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dubber Corporation. The Motley Fool Australia owns shares of and has recommended Dubber Corporation. The Motley Fool Australia has recommended A2 Milk and Freelancer Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers