Why Cronos Australia, Pilbara Minerals, Sayona Mining, and Strike Energy are dropping

These ASX shares have tumbled on dropped into the red on Wednesday…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing, the benchmark index is up 1.6% to 6,808 points.

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

Cronos Australia Ltd (ASX: CAU)

The Cronos Australia share price is down a further 1.5% to 66.5 cents. This means that the medicinal cannabis company's shares are now down over 5% this week despite there being no news out of it. However, the Cronos Australia share price has been on fire in recent weeks, so this could have been driven by profit taking.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down over 1% to $5.05. This morning the team at UBS retained its sell rating on the lithium miner's shares with a slightly increased price target of $2.65. This price target is significantly lower than where Pilbara Minerals' shares trade currently, suggesting major downside risk.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is down 3% to 24.7 cents. This is despite the lithium developer providing an update on its Moblan Lithium Project in Quebec, Canada. Sayona has launched the pre-feasibility study for the project and is expecting it to be complete by May next year. Weakness in the lithium industry appears to have offset this.

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is down 2% to 25 cents. This is despite the oil and gas exploration company providing an update on testing operations at its South Erregulla gas discoveries in EP503. Gas composition has initially been measured as a high-quality dry gas with 4-5% CO2 and negligible other measured impurities.

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