Why Andean Silver, CBA, Life360, and Silex shares are dropping today

These shares are out of form on Tuesday. But why?

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Key points

  • Andean Silver's shares are dropping 2.5% despite strong demand for its expanded $6 million share purchase plan, reflecting investor confidence in its Cerro Bayo Project and plans for accelerated growth initiatives.
  • Commonwealth Bank of Australia shares are down over 2% amidst a broader sell-off of the big four banks, hinting at potential portfolio rebalancing by large investors.
  • Silex Systems is experiencing a substantial 35% drop after its joint venture, Global Laser Enrichment, was not selected for a major U.S. Department of Energy program, overshadowing a smaller award for advancing uranium enrichment technology.

The S&P/ASX 200 Index (ASX: XJO) has given back its early gains and dropped into the red. In afternoon trade, the benchmark index is down 0.4% to 8,692.9 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Andean Silver Ltd (ASX: ASL)

The Andean Silver share price is down 2.5% to $2.42. This follows news that the silver miner has doubled the size of its share purchase plan (SPP) due to increased demand. The SPP will now raise $6 million, but it could have been so much more. Andean Silver revealed that it received applications totalling approximately $18 million, which significantly exceeded the original $3 million target. Andean Silver's chair, David Southam, said: "The demand for the SPP was exceptionally strong, reflecting the rapid progress we are making at the Cerro Bayo Project and our ability to unlock an abundance of opportunities to drive growth and value creation. The proceeds from the Placement and SPP will help us accelerate our drilling programs, project studies and potential land acquisitions. Andean is uniquely placed in the silver market with its significant existing infrastructure, which will help deliver a capital-light restart in the quickest and most efficient manner."

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down over 2% to $156.76. This is despite there being no news out of the banking giant. However, it is worth noting that all the big four banks are sharply lower today. This could be a sign that some large investors are rotating out of the banks and into other areas.

Life360 Inc (ASX: 360)

The Life360 share price is down 2.5% to $31.18. This morning, this location technology company announced the completion of its Nativo acquisition and provided an update on its user growth. With respect to the latter, Life360 now has over 50 million monthly active users (MAU) in the United States. This is up from 48.7 million at the end of September, which may be lower than the market was expecting given its historical growth rates.

Silex Systems Ltd (ASX: SLX)

The Silex Systems share price is down 35% to $6.33. This morning, the company revealed that its joint venture business, Global Laser Enrichment, has not been selected for a US$900 million program focused on low enriched uranium by the U.S. Department of Energy (DOE). And while the company has been selected for an award of up to US$28 million from the DOE to advance next generation laser-based uranium enrichment technology, this wasn't the award the market was hoping for.

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. 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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