The proposed JV partner, Blue Aqua International, is a one-stop solution provider for the aquaculture industry worldwide. Specifically, the group provides cutting-edge solutions for the management of the aquaculture environment and the optimisation of animal nutrition.

Stemcell United is an Australian small cap in the field of plant stem cell technology. Accordingly, it is actively researching products in industrial cannabis and Chinese herbs for use in the cosmeceutical fields. 

What moved the Stemcell share price?

Stemcell United has successfully trialled plant stem cell technology on Sea Grape cultivation at its research base located in Singapore. As a result, the joint venture combines the strengths of both parties in creating an integrated aquaculture farming system. Moreover, the collaboration aims to implement a scalable circular economy in aquaculture. This includes plans to promote the ocean vegetable's unique qualities as a sustainable superfood and plant-based protein.

The Stemcell share price has rallied based on the potential for revenue generation within a relatively short period of time. Although the company already generates revenues, this moves it closer to becoming a profitable organisation. 

Management commentary

Mr. Philip Gu, Stemcell United CEO and Executive Chairman, commented:

SCU is honoured to be able to partner with Blue Aqua in making Sea Grapes available to the growing population on a commercial scale, and with the strong belief that Sea Grapes will become part of a recognised balanced diet mix… The COVID-19 pandemic has added additional urgency to Singapore's food security concerns, which makes this joint venture even more compelling.

Dr. Farshad Shishehchian, Founder, Group President and CEO of Blue Aqua International commented:

The synergy with SCU is palpable. Passion and a strong technological partnership is a good recipe for sustainable growth. The joint incorporation of SCU Green Aqua Farm embodies our continual efforts to build a circular economy in aquaculture, starting with our own production systems towards the development of sustainable nutrition globally.

The post Here's why the Stemcell United (ASX:SCU) share price nearly doubled today appeared first on The Motley Fool Australia.

Four shares which haven't been able to match the market today are listed below. Here's why they are ending the week in the red:

The Orica Ltd (ASX: ORI) share price is down almost 3.5% to $19.70 after Deutsche Bank downgraded the commercial blasting company's shares to a hold rating with a reduced price target of $20.25. According to the note, the broker believes that unfavourable currency movements may impact the company's results. I think its shares are a little expensive at the moment, so I would have to agree with Deutsche on this one.

The Sirtex Medical Limited (ASX: SRX) share price has tumbled almost 3.5% to $13.43 despite there being no news out of the regenerative medicine company. Last week the company advised that it has complied with an infringement notice issued by ASIC related to an alleged contravention of its disclosure obligations. Although it denies the allegation, it decided to pay the $100k penalty.

The Stemcell United Ltd (ASX: SCU) share price has fallen 8.5% to 3.2 cents. Today's decline is likely to be the result of profit taking after its shares inexplicably rose 29% on Thursday. In my opinion, this is one medicinal cannabis hopeful that investors ought to stay well clear of.

The TPG Telecom Ltd (ASX: TPM) share price has fallen over 2.5% to a multi-year low of $4.86. Investors continue to head to the exits over concerns about the telco company's future profitability due to weaker-than-expected NBN margins. Its shares are now down almost 44% since this time last year. While I wouldn't be in a rush to buy, I do think its shares are starting to look like great value.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

In late trade the prospective medicinal cannabis company's shares have rocketed higher by 22% to 3.3 cents despite there being no news released today.

But with the volume of shares traded up significantly, some investors clearly believe that something is brewing behind the scenes.

Which would be a touch surprising considering the company's recent insider selling. On September 18 the company's CEO Huanqing Gu offloaded 15 million shares for a cash consideration of $600,000.

Despite this sizeable share price gain today, Stemcell United's shares are still down a whopping 83% in the last six months.

The post Stemcell United Ltd shares rocket 22% higher appeared first on The Motley Fool Australia.

Four shares which have fallen more than most today are listed below. Here's why they have sunk deep into the red:

The Acrux Limited (ASX: ACR) share price has plunged 28% to 19 cents after the drug development company advised that the licensing agreement with Eli Lilly for its Axiron testosterone drug has been terminated. I would stay clear of Acrux for the time being despite how cheap it may look.

The Catapult Group International Ltd (ASX: CAT) share price is down 8% to $1.47. Today's decline is likely to be the result of a research note out of Bell Potter this morning. According to the note, Bell Potter has downgraded Catapult to a hold rating due to concerns over its rising operating expenses. Although I do like the company and its products, I'm sitting this one out until it becomes profitable.

The Insurance Australia Group Ltd (ASX: IAG) share price has fallen 4% to $6.18. A good portion of today's decline is due to the insurance giant's shares going ex-dividend this morning. Shareholders can look forward to receiving the fully franked 20 cents per share final dividend in their bank accounts on October 9.

The Stemcell United Ltd (ASX: SCU) share price has continued its poor run and is down 13% to 4.5 cents. The medicinal cannabis hopeful has now seen its shares fall by over 35% since the release of its full-year results on August 31. That release revealed a full-year loss of $2.4 million on revenue of just $31,600.

The post Why these 4 ASX shares sank deep into the red today appeared first on The Motley Fool Australia.

Unfortunately not all shares have been able to match the market today. In fact, four shares in particular are ending the week in the red. Here's why:

The Catapult Group International Ltd (ASX: CAT) share price has fallen 4% to $1.63 a day after the sports analytics company released a disappointing full-year result. On Thursday Catapult reported a loss of $13.6 million on revenues of $60.8 million. Whilst I think it is an exciting company, I'm holding off an investment until it becomes profitable.

The Harvey Norman Holdings Limited (ASX: HVN) share price has continued to sink lower, this time by 4% to $3.91. The retailer's shares have come under heavy selling pressure since it decided to cut its dividend despite posting a record profit of $448.98 million. Whilst its shares look dirt cheap now, I would suggest investors stay clear of the company due to Amazon's launch in Australia looking imminent.

The Nextdc Ltd (ASX: NXT) share price has fallen 2.5% to $4.47 after there was another twist in the battle for control of Asia Pacific Data Centre Group (ASX: AJD). This morning 360 Capital Group Ltd (ASX: TGP) lifted its offer for shares in the data centre REIT that it does not already own to $1.95. This may now mean that NEXTDC has to lift its own offer accordingly to fend off 360 Capital.

The Stemcell United Ltd (ASX: SCU) share price has plunged almost 8% to 5.9 cents. After the market closed yesterday the medicinal cannabis hopeful released a preliminary report which revealed a $2.4 million loss from revenue of just $31,600. This might be one to avoid, unfortunately.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

Stemcell United Ltd (ASX: SCU) saw its share price climb nearly 3,000% in one day in March after announcing that it had appointed the industry-acclaimed "King of Cannabis" Nevil Schoenmakers as a strategic adviser.

A portfolio of the following 14 ASX companies involved in the marijuana sector has rallied 278% since the start of this year.

The largest, TPI Enterprises Limited (ASX: TPE) has a market cap of $137 million according to Commsec. Medlab Clinical Ltd (ASX: MDC) has a market cap of $84 million says Google Finance, followed by MMJ Phytotech Ltd (ASX: MMJ) with $71 million and then Auscann Group Holdings Ltd (ASX: AC8) which is valued at $57.5 million.

MGC Pharmaceuticals Ltd (ASX: MXC) is valued at $48.3 million, closely followed by Cann Group Ltd (ASX: CAN) at $47 million. Creso Pharma Ltd (ASX: CPH) is valued at $33 million and Zelda Therapeutics Ltd (ASX: ZLD) on $31 million.

Then we have the minnows, including Stemcell United, Botanix Pharmaceuticals Ltd (ASX: BOT), Hydroponics Company Ltd (ASX: THC), Queensland Bauxite Ltd (ASX: QBL), Esense-Lab (ASX: ESE) and BOD Australia Ltd (ASX: BDA).

However, there are big differences in what each of the companies do along the marijuana supply chain.

Here's a brief summary of some of the major players in the sector.

TPI Enterprises mostly produces narcotic raw material (NRM) from poppies but is moving into producing medicinal cannabis. In the 2016 financial year (FY16), TPI produced a loss before tax of $14 million, despite sales of $7.6 million. Those sales are mostly from NRM, not medicinal cannabis.

Medlab Clinical is a speculative biotechnology company that is starting human trials of different cannabis-based therapies. There's no certainty that the trials will be successful, but Medlab is focused on other medicines as well as nutraceuticals. So far, that hasn't lead to profits, with the biotech reporting a $1.8 million loss for the six months to the end of December 2016.

MMJ Phytotech is more a holding company, with a ~60% interest in Canadian corporation Harvest One Cannabis Inc (market cap of ~C$49 million) and its wholly-owned Israeli subsidiary, research and development company Phytotech Therapeutics Ltd. Harvest One is diversified too, with a horticultural arm named United Greeneries and medical business Satipharm AG. Phytotech Therapeutics is conducting medical trials with medicinal cannabis-based therapies. MMJ Phytotech had no revenues in the last six months, producing a first-half loss of $4.5 million.

Auscann aims to become a producer of medicinal cannabis in Australia, but has already completed its first harvest (of more than 300kgs) in Chile in April 2017. The company currently imports cannabis medicines into Australia, which will be used until its own product becomes available. Auscann even supplies Zelda Therapeutics for clinical trials. So far Auscann hasn't generated any revenues, and we'll have to wait for their June quarter report to find out if any progress has been made.

MGC Pharmaceuticals produces and distributes medicinal cannabis from a number of sites in Europe, and has a 51% interest in MGC Derma, a cosmetics and dermatological products company. MGC is also conducting clinical trials on a number of cannabis formulations for treatment of diseases such as epilepsy. In the March 2017 quarter, MGC saw $51,000 in sales from customers, which should ramp up over the next quarters.

Cann Group is a grower and licenced producer of marijuana as well as holding two cannabis research permits. First plants are expected to be harvested in early August 2017, so the company has yet to see much in the way of sales revenue. Canada's second-largest listed medicinal marijuana company Aurora Cannabis Inc holds a 19.9% stake in Cann Group.

Creso Pharma has two divisions, with Creso Switzerland focused on development and commercialisation of medicinal cannabis both for humans and animals. The second division, Hemp Industries focuses on cultivating and producing hemp-based health products. Creso should see substantial sales flowing in the next few months with the imminent release of a number of products.

Zelda Therapeutics is focused on developing medicinal cannabis therapies and running clinical trials for insomnia, eczema and autism, as well as several pre-clinical cancer studies.

I won't cover the smaller companies here – that's for another post.

Foolish takeaway

It's hard to tell which of these medicinal cannabis companies will be the successful ones at such an early stage in their life. Investors might want to view most (if not all) of these stocks as highly speculative and should, therefore, have limited exposure to them as a sector. Most investors portfolios should be chock-a-block full of stocks like the ones highlighted below.

The post ASX-listed pot stocks reviewed appeared first on The Motley Fool Australia.

In afternoon trade the medicinal cannabis company's shares are down 3.5% to 8.5 cents. This latest drop brings its three-month decline to over 57%.

Whilst this is a disappointing decline, spare a thought for investors that bought shares at its peak of 41 cents in March.

Since hitting that level after announcing that it had appointed the industry-acclaimed "King of Cannabis" Nevil Schoenmakers as a strategic adviser, its shares have lost almost 80% of their value.

Whether or not its shares will ever reach those levels again, only time will tell.

Stemcell United is just one of a number of medicinal cannabis companies that are listed on the Australian share market.

If you're not familiar with the pot stock industry, here is a recent break down of what is going on in the industry at the moment.

The post The Stemcell United Ltd share price is down 57% in three months appeared first on The Motley Fool Australia.

Some shares have gone gangbusters, others have fallen sharply. Here's what you need to know:

The Auscann Group Holdings Ltd (ASX: AC8) share price has fallen 21% month-to-date. A $12 million capital raising at 50 cents per share has been the catalyst for the sell-off. Whilst the raising is dilutive, it does arguably put the company in a much stronger position to deliver on its long-term goals.

The Cann Group Ltd (ASX: CAN) share price is up 86% in May. Cann Group hit the ASX boards at the start of the month at 30 cents per share. With an impressive board and cornerstone investors, Cann Group is certainly one to watch in the industry in my opinion. It was the first company in Australia to be granted a licence to cultivate medicinal cannabis.

The Creso Pharma Ltd (ASX: CPH) share price has tumbled 30% since the start of the month despite the fact it became the first Australian company to successfully import medicinal cannabis products. The pharmaceutical company is developing products for both the human and animal health markets. Creso aims to launch two products into the animal health market in the third quarter of 2017.

The Hydroponics Company Ltd (ASX: THC) share price is up 50% since landing on the ASX at 20 cents per share earlier this month. Last week the diversified cannabis company announced a joint venture with US-based Phoenix Life Sciences. The two companies will research, develop, manufacture, distribute and sell medicinal cannabis products in Australia and internationally. The reception to the news has been rather lukewarm.

The MMJ Phytotech Ltd (ASX: MMJ) share price is down a remarkable 38% since the start of the month. In the middle of the month the company advised that its Israeli-based subsidiary PhytoTech Therapeutics had been granted approval to conduct a phase two clinical study into the safety and efficacy of its PTL201 capsules in treating spasticity related symptoms of multiple sclerosis. As positive as the news was, it wasn't enough to prop up its share price unfortunately.

The Stemcell United Ltd (ASX: SCU) share price is up around 4% month-to-date. However, it is worth noting that its shares are close to 42% lower than their May high. Its share price had a great start to the month, rising close to 41% in one day despite there being no news out of the company. Unsurprisingly it has given back almost all of those gains now.

The Zelda Therapeutics Ltd (ASX: ZLD) share price has tumbled 37% in May. This is all the more remarkable considering Zelda hasn't released a single announcement this month. Whilst I do think Zelda has a lot of potential, I believe this decline shows why an investment in the industry is unsuitable for most investors.

The post Aussie pot stock update: Here's what you missed this month appeared first on The Motley Fool Australia.

Some of the biggest gains on the market today can be found in the medicinal cannabis industry. Here's the current state of play in the fledgling industry:

The Auscann Group Holdings Ltd (ASX: AC8) share price has continued to climb higher, this time by 6% to 72 cents. Its shares have now rallied almost 25% since last week's announcement that it has secured a licence to cultivate medicinal cannabis in Australia.

The Cann Group Ltd (ASX: CAN) share price has jumped 13% to 75 cents. Cann's shares listed on the ASX last week at 30 cents. This means investors lucky enough to get in on the IPO have seen the value of their investment rise 150%. Cann was the first company in Australia to be granted a licence to cultivate medicinal cannabis.

The Creso Pharma Ltd (ASX: CPH) share price is up 9.5% to 64 cents. Creso Pharma became the first company to import medicinal cannabis products into Australia last week. Its subsidiary Health House will distribute its CanniMed products throughout the country.

The Hydroponics Company Ltd (ASX: THC) share price is flat at 36.5 cents. The Hydroponics Company was another pot stock to hit the ASX boards last week. It aims to be a leading manufacturer and distributer of cannabis products and equipment.

The MMJ Phytotech Ltd (ASX: MMJ) share price is up slightly to 41.5 cents. Today's gain will be a welcome relief to shareholders. In the last 30 days MMJ Phytotech's shares have been on a downward slide and fallen almost 35%.

The MGC Pharmaceuticals Ltd (ASX: MXC) share price is up 5% to 6.3 cents. Last week the company announced a collaboration with the Royal Melbourne Institute of Technology. The two will work together on a full suite of medicinal cannabis research initiatives, initially centred on genetics and cultivation.

The Stemcell United Ltd (ASX: SCU) share price is up 7.5% to 14.5 cents today despite there being no news out of the company in the last couple of weeks. Its shares are amongst the most volatile in the industry with wild swings becoming an almost daily occurrence.

The Zelda Therapeutics Ltd (ASX: ZLD) share price is up 5% to 10 cents. Last month the company announced plans to expand its clinical trials in Chile to cover autism. If things go to plan Zelda could be generating revenues by next year.

Finally, although I think there are one or two companies amongst this growing list which could go on to bigger and brighter things, at this stage it is difficult to predict which will rise to the top. So for this reason I think investors may be better off just watching on from the sidelines for the time being.

The post Pot stocks start the week strongly: Here's what you need to know appeared first on The Motley Fool Australia.

Here's the state of play in the industry today:

The Auscann Group Holdings Ltd (ASX: AC8) share price climbed almost 3% to 58 cents before the company placed its shares in a trading halt pending an announcement. According to the release the announcement is in regards to an update to its Australian operations. Shareholders will no doubt be hopeful this is positive news relating to license application.

The Cann Group Limited (ASX: CAN) share price has exploded higher after hitting the bourse today. Its shares climbed as high as 77 cents in early trade. At present they are up 100% from their 30 cents listing price to 60 cents. With an impressive list of directors and key links with a major Canadian producer, leading hedge fund Tribeca Investment Partners has seen enough potential in the company to invest in its IPO.

The Creso Pharma Ltd (ASX: CPH) share price is down slightly to 58 cents today. Earlier this week Creso Pharma announced that it had imported the first medicinal cannabis products into Australia under new government legislation. Surprisingly the reaction to the news has been relatively subdued.

The Hydroponics Company Ltd (ASX: THC) share price has also rocketed higher on its first day on the ASX boards. At the time of writing its shares are up 82.5% to 36.5 cents. The Hydroponics Company aims to be a leading manufacturer and distributer of cannabis products and equipment.

The MMJ Phytotech Ltd (ASX: MMJ) share price has fallen 16% to 41.5 cents today. Once again, the company's shares have tumbled despite another huge rally in the shares of its Canada-listed 60%-owned Harvest One Cannabis.

The MGC Pharmaceuticals Ltd (ASX: MXC) share price has edged higher to 5.9 cents. Earlier this week the company announced a collaboration with the Royal Melbourne Institute of Technology on a full suite of medicinal cannabis research initiatives, initially centred on genetics and cultivation.

The Stemcell United Ltd (ASX: SCU) share price has jumped 11.5% to 14.5 cents today despite there being no news out of the company.

The Zelda Therapeutics Ltd (ASX: ZLD) share price is up 4.5% to 9.2 cents. Last month the company announced plans to expand its clinical trials in Chile to cover autism. Management aims to commence the trials in the second-half of the year.

As I have said previously, I do feel one or two of these companies could go on to have great success. But it is still very early days and picking a winner out of a growing pool of companies is very difficult. For this reason I think the majority of investors would be better off watching on from the sidelines for the time being.

The post Aussie pot stocks storm higher: Here's what you need to know appeared first on The Motley Fool Australia.

Here is the state of play in the industry today:

The Auscann Group Holdings Ltd (ASX: AC8) share price has dropped 5.5% to 59 cents. Today's decline means the pot stock has lost around 34% of its value in the last 30 days.

The Creso Pharma Ltd (ASX: CPH) share price is down 6.5% to 58.5 cents despite the release of a positive announcement. This morning Creso Pharma announced that it had imported the first medicinal cannabis products into Australia under new government legislation.

The MMJ Phytotech Ltd (ASX: MMJ) share price has fallen 17% to 49 cents despite a huge rally overnight in the shares of its Canada-listed 60%-owned Harvest One Cannabis.

The MGC Pharmaceuticals Ltd (ASX: MXC) share price has dropped 3.5% to 6 cents even though it announced a strategic agreement with the Royal Melbourne Institute of Technology. The two parties will collaborate on a full suite of medicinal cannabis research initiatives, initially centred on genetics and cultivation.

The Stemcell United Ltd (ASX: SCU) share price has fallen 20% to 16 cents despite there being no news out of the company. Big share price movements on no news are nothing new for Stemcell United. Yesterday its shares jumped 41% without reason, prompting an ASX price query.

The Zelda Therapeutics Ltd (ASX: ZLD) share price has dropped 9% to 9.1 cents. Today's decline has almost wiped out all of the strong gains it made in April after it announced plans to expand its clinical trials in Chile.

Overall, I believe today's declines show just how volatile the industry can be for investors at this point in time. Whilst one or two of these companies may well go on to greater things, I believe investors are better off watching from the sidelines for the time being.

The post Pot stocks CRUSHED: Here's what you need to know appeared first on The Motley Fool Australia.

Four shares which have had even better starts to the week are listed below. Here's why they have surged higher:

The Bubs Australia Ltd (ASX: BUB) share price is up 3.5% to 15 cents after the infant formula and baby food company announced that it is the first Australian company to directly enter into a merchant agreement with Chinese social commerce application RED. With over 40,000,000 registered users, RED is the largest and fastest growing social commerce application in China.

The Lovisa Holdings Ltd (ASX: LOV) share price has jumped 8.5% to $3.80 after the fashion accessory company provided the market with its full-year guidance. Thanks to a strong second-half, management expects full-year EBIT to be between $38.5 million and $39.5 million. This is a good deal higher than the market consensus of $35.5 million.

The RCR Tomlinson Limited (ASX: RCR) share price is up almost 9% to $3.09 following a positive announcement out of the engineering and infrastructure company. According to the announcement the company has been awarded two contracts, totalling approximately $50 million. Both are with Canadian Solar and will see the company design and construct the 15MW Longreach Solar Farm and the first phase of the 25MW Oakey Solar Farm.

The Stemcell United Ltd (ASX: SCU) share price has rocketed 37.5% to 16.5 cents despite there being no news out of the pot stock. Whilst there are pot stocks on the ASX which I feel could deliver on expectations in the future, at this point in time Stemcell United isn't one of them. For this reason I would suggest investors avoid the company.

The post Why these 4 ASX shares have started the week with BIG gains appeared first on The Motley Fool Australia.

At lunch its shares are up a massive 41% to 17 cents despite there being no news out of the pot stock.

Today's gain means its shares are up a staggering 1,200% since the middle of March when it first announced plans to pursue opportunities in the medical cannabis sector.

This level of return means that a $5,000 investment in the company on March 14 would be worth approximately $65,000 today.

Whilst that is no doubt an outstanding return, not all investors will have been so lucky. Stemcell United's shares actually climbed as high as 41 cents in the days following the announcement.

So with its shares now at 17 cents, investors which bought in at the top will have seen their investment lose over 58% of its value now.

What's next?

Whilst I think there are some pot stocks, such as Auscann Group Holdings Ltd (ASX: AC8) and Zelda Therapeutics Ltd (ASX: ZLD), which could actually have bright futures ahead of them, I have seen very little out of Stemcell United to justify the share price gains.

Furthermore, with just $211,000 cash in the bank and estimated cash outflows of $185,000 for the next quarter, the company is coming perilously close to needing to raise capital.

Whilst it does have an unsecured credit facility available to it, that won't last too long at the current burn rate.

So I would suggest investors avoid gambling on Stemcell United and invest their hard-earned money elsewhere in the market.

The post The Stemcell United Ltd share price is up 41%: Is it a buy? appeared first on The Motley Fool Australia.

The mining sector is the clear underperformer today, although the energy, gold and utilities sectors are posting quite healthy gains.

Four shares that are having a particularly bad day today, include:

South32 Ltd (ASX: S32)

The South32 share price has fallen more than 3.2% today, despite announcing a US$500 share buy-back. The buy-back is equivalent to around 4.5% of the miner's current market capitalisation and will be funded from existing cash reserves. Today's share price reaction is somewhat surprising considering buy-backs are generally quite well received. Nonetheless, shares of South32 have still managed to climb more than 70% over the past 12 months.

BHP Billiton Limited (ASX: BHP)

The BHP share price has plunged more than 3% today as investors react to last week's big drop in iron ore prices. The bulk commodity has enjoyed a huge run over recent months, but it appears traders are starting to lock in profits amid fears that prices may have peaked. Possibly adding to concerns is the wavering confidence in Donald Trump's ability to implement his pro-growth agenda that has also helped to boost mining shares recently.

Mesoblast limited (ASX: MSB)

The Mesoblast share price has fallen more than 7.5% to $2.21 today, after the biotechnology company announced a US$40 million capital raising. The placement will result in 26.25 million new shares being issued to institutional investors at an offer price of A$2.00 per share. Mesoblast will use the funds to advance its phase 3 clinical trials program as well as for developing manufacturing facilities in anticipation of new product approvals.

Stemcell United Ltd (ASX: SCU)

The Stemcell United share price has crashed more than 10.5% today, despite no news from the company. The small-cap company made headlines earlier this month after its shares catapulted more than 3000% in a single day after it announced that it was looking to pursue opportunities in the medical marijuana sector. The shares have since come back down to earth with the market realising there is still little evidence that Stemcell United has any credible prospects of becoming a major player in the sector.

The post Why these 4 shares are getting hammered today appeared first on The Motley Fool Australia.

Unfortunately not all shares are finishing the week so strongly. In fact, four shares in particular have taken a sharp drop today. Here's why:

The Collins Foods Ltd (ASX: CKF) share price has fallen 7% to $5.46 following a successful $54.5 million placement at $5.25 per share. The funds will be used to acquire 16 KFC restaurants located in the Netherlands from subsidiaries of Yum! Brands. At 14x trailing earnings I think Collins Foods may have fallen into the buy zone now.

The Downer EDI Limited (ASX: DOW) share price has plunged 25% to $5.52 after institutional investors snapped up only 66% of the shares available to them in an equity raising. This was despite the offer being a 20% discount to Downer's last closing price. Downer intends to use the funds to acquire struggling services company Spotless Group Holdings Ltd (ASX: SPO) for approximately $1.27 billion.

The Evolution Mining Ltd (ASX: EVN) share price has dropped almost 4% to $2.05. The miner is one of a number of shares in the gold mining industry to be sold off today as investors move away from the precious metal and back into risk assets.

The Stemcell United Ltd (ASX: SCU) share price has fallen 13% to 19.5 cents. The company's decision to switch its focus to medical marijuana in the last few weeks appears to have raised eyebrows at the ASX. Judging by its share price performance today, it would appear as though many investors were not satisfied with the answers it provided to the ASX compliance team.

The post Why these 4 ASX shares are ending the week in the red appeared first on The Motley Fool Australia.

Virgin Australia Holdings Ltd (ASX: VAH)

If you look at a 10-year price chart of Virgin shares it will tell you everything you need to know about this company's prospects. Virgin has struggled to remain profitable for most of its history, and even now that fuel prices are low – a big tailwind – the company is finding it hard to generate returns for shareholders. Virgin looks like the kind of business that is better owned by somebody else.

Genworth Mortgage Insurance Australia (ASX: GMA)

Genworth is a company that I had a good look at from a value investing perspective, because of the company's solid pile of assets and low price. However, the devil is in the details and I think that it is tough for shareholders to figure out the risks carried in the company's policies. On the face of it, Genworth's insurance portfolio looks safe, with an average LVR of around 56% and only 5% of loans are 'low-doc'.

However, the probable maximum loss of the Genworth portfolio is more than $2 billion, and it only takes a small percentage of policies going bad to wipe out profits and eat into the company's assets. Then there's the ease of calculating the likelihood of mortgages entering arrears, from a Reserve Bank publication:

Simple! (Ha.) It makes more sense if you read the rest of the document, but Genworth still belongs in the too-hard basket. You can't get access to the data you would need to make an informed decision about the likelihood of policies going bad, and accordingly, in my opinion, shareholders don't really know the types of risks they are taking. I'd leave Genworth on the shelf for the time being.

Pot stocks

As fool.com.au contributors have written ad nauseam the past few weeks, pot stocks appear highly risky. There are a couple I've looked at, like Auscann Group Holdings Ltd (ASX: AC8) that appear to have an eye to conserving cash to fund their long-term ambitions in the sector. This is not to say that these companies are outstanding investments, only that they could prove less bad than the rest of the sector. There are a few others that appear self-interested, with high executive salaries, and a few like Stemcell United Ltd (ASX: SCU) and Queensland Bauxite Ltd (ASX: QBL) that look like pure opportunists that will likely use their recently-elevated share price to raise capital soon.

Ultimately I would avoid all of the above companies today, as very few of them look like the type that an enterprising reader could use to safeguard their retirement.

The post Sell these 3 stocks now to avoid blowing up your portfolio appeared first on The Motley Fool Australia.

Seven shares in particular have stood out. Here's what drove them higher:

The Blackmores Limited (ASX: BKL) share price has rocketed 14% to $114.57 points after the Australian Financial Review reported that China has delayed its new cross border e-commerce laws indefinitely. These laws had threatened to reduce the sales of many leading exporters into the country. So it's no surprise to see shares like Blackmores, a2 Milk Company Ltd (Australia) (ASX: A2M), Bellamy's Australia Ltd (ASX: BAL), and BWX Ltd (ASX: BWX) surge higher today.

The Stemcell United Ltd (ASX: SCU) share price has risen 39% to 23 cents. Stemcell United's shares have been going nuts since announcing plans to enter the medical marijuana space. Whilst the company could yet come up with the goods, at this stage I feel this is as speculative as it comes.

The Spotless Group Holdings Ltd (ASX: SPO) share price has climbed a massive 45% to $1.05 after services company Downer EDI Limited (ASX: DOW) announced its plan to acquire the company for $1.27 billion. This equates to an all cash offer of $1.15 per share. Considering the problems that Spotless has been having, I think this is a decent offer for its shareholders.

The TPG Telecom Ltd (ASX: TPM) share price has jumped 6% to $7.01 following the release of a strong half-year result which saw half-year revenue rise 8% and profit climb 11%. For the full-year management reiterated previous underlying operating profit guidance of between $820 million and $830 million. At the current share price I feel TPG Telecom would be a great investment.

The post Why these 7 ASX shares went nuts today appeared first on The Motley Fool Australia.

Fletcher Building Limited (Australia) (ASX: FBU) dropped 10% to $7.53 after the company announced a downgrade to its full-year profit outlook. Fletcher now expects to earn between $610 million and $650 million for the full year, down from $720 million to $760 million previously. Fletcher shares are still up 11% compared to last year, however.

Nearmap Ltd (ASX: NEA)fell 3% to $0.53 on no news, as investors remain wary of the company's expansion into the USA. While Nearmap is not profitable, it is a minority player in both the Australian and US markets and is thought to have a strong pathway for growth ahead of it. Nearmap shares have risen 34% in the past 12 months.

Slater & Gordon Limited (ASX:SGH) lost 6% to $0.122 as enthusiasms cooled following a strong share price rise on Friday. With the business continuing to struggle and a possible debt to equity swap set to minimise the value of existing shareholder's stakes, the company is far too risky in my opinion and should be avoided. Slater & Gordon shares have fallen 55% over the past 12 months.

Stemcell United Ltd (ASX: SCU) plunged 12% to $0.185 on the tail of a ~1500% rise over the past few months. This tiny cap has been swept up in the excitement surrounding the marijuana sector at the moment, although as Foolish analyst Mike King warned, there are many possible reasons an investment in these companies could end in tears. Stemcell shares have skyrocketed since announcing their marijuana venture.

The post Here's why these 4 shares crashed on the market today appeared first on The Motley Fool Australia.