Four shares that have fallen more than most today are listed below. Here's why they have started the week in the red:

The Ainsworth Game Technology Limited (ASX: AGI) share price has crashed a further 10% lower to 80 cents. On Friday the gaming technology company released a trading update that warned that revenues and profit before tax would be materially lower for its Australian segment in the first half of FY 2019. Management blamed highly competitive trading conditions and a decline in overall industry demand. As a result, this morning analysts at Macquarie downgraded its shares to an underperform rating and slashed the price target on its shares to 75 cents.

The Citadel Group Ltd (ASX: CGL) share price has fallen 7% to $7.49 despite there being no news out of the specialist in IT security and data management. However, with its shares up 25% over the last 12 months prior to today, I suspect that some investors may be taking a bit of profit off the table. I think Citadel is a great long term option and could be worth a closer look after its recent pull back.

The Galaxy Resources Limited (ASX: GXY) share price is down almost 2.5% to $2.56. This decline comes despite the lithium miner announcing the completion of its US$280 million tenements sale to South Korean conglomerate POSCO this morning. The proceeds from the transaction will be applied immediately towards accelerating the development of its Sal de Vida Project.

The Metro Performance Glass Ltd (ASX: MPP) share price has plunged a massive 30% to 38 cents after the glass products company released its half year results. For the first half of FY 2019, Metro Performance Glass reported a 1% decline in revenue to NZ$140.5 million, an 18% decline in EBIT to $NZ$15.5 million, and a 22% decline in net profit after tax to NZ$9.1 million. Management blamed poor trading results in a challenging Australian market for the declines.

The post These 4 ASX shares have started the week deep in the red appeared first on The Motley Fool Australia.

Is Metro cheap?

Metro has 185 million shares on issue, giving it a market capitalisation of $148 million at $0.80 per share. It has $94 million in borrowings, giving it an Enterprise Value (EV) of $242 million.

Using its top-end guidance of $20 million in profit for the full year, Metro is priced at 7.4x its net profit after tax (NPAT) giving it a Price to Earnings (P/E) ratio of 7.4. This compares to the ASX average P/E of around 15x-16x at present.

With this guidance, Metro could earn around $42 million in earnings before interest, tax, depreciation, and amortisation (EBITDA).  This would give the company an enterprise value to EBITDA (EV/EBITDA) ratio of 5.8x, which compares favourably to the ASX norm of around 8x-12x.

Bear in mind that Metro is a manufacturing business, so it is unlikely to be 'worth' much more than, say, a 12x P/E or 8x EV/EBITDA.

Does that make it a buy?

While Metro looks cheap, and indeed will be if it can maintain its earnings, I have a deep degree of uncertainty regarding how resilient its business is. First, the company was already highly priced at debut, and shareholders have been stung by the company's underperformance.

Second, it is impossible to escape the risk that construction markets – and demand for Metro's product – are quite buoyant and being fuelled by easy credit. It is not inconceivable for construction activity to halve in a serious downturn, which is potentially quite serious given that Metro has already reported measurable impacts from minor tightening in lending conditions.

Third, I am of the view that we are closer to a cyclical peak in property markets, although underlying demand remains strong in places like Auckland. Metro recently announced plans to double its production capacity in Australia. Companies that add to their capacity in boom times almost invariably get punished in a downturn and struggle to earn attractive through-the-cycle returns for shareholders.

I am not sure how resilient the glass business is in a downturn, and management has noted that supply has recently been a serious constraint on sales (which is usually a positive for industry pricing). This may make adding capacity a worthwhile decision, but I would be cautious and would want to look at the industry in depth (e.g. to see if other players are adding capacity, or if Metro has a cost advantage) before investing here.

While that sounds quite negative, there are several strong trends in favour of Metro, including strong underlying property demand in the key Auckland market, as well as refitting opportunities in the company's double-glaze business. At today's prices I find the company quite interesting, but it is cyclical, carries a meaningful amount of debt, and operates in a competitive space. I would suggest investigating the wider industry further before making an investment decision, as the downside for buying an indebted manufacturer, at a cyclical peak, while it is adding capacity, is potentially severe.

The post Down 60% in 2017: Is Metro Performance Glass Ltd an opportunity? appeared first on The Motley Fool Australia.

Every sector ended in the red, with the S&P/ASX All Ords Gold (Index: ^AXGD) (ASX: XGD) down 3.9% as gold miners were hammered. Resources stocks weren't too far behind, with the S&P/ASX 300 Metal and Mining (Index: ^AXMM) (ASX: XMM) sinking 3.7%.

However, despite appearances, some stocks still managed to post positive gains. Here's four of them…

Metro Performance Glass Ltd (ASX: MPP) soared 6.3% to $2.12, despite no announcements from the company today. Metro Performance is a New Zealand-based company supplying customised glass products across the country. The company recently announced the acquisition of Australian Glass Group for A$43 million which will add around A$45 million in sales and earnings before interest, tax, depreciation and amortisation (EBITDA) of A$8 million annually. Looks like some Australian investors are starting to take notice.

Gtn Ltd (ASX: GTN) gained 6.1% to $3.13. The company offers customers an advertising platform via traffic reports delivered to radio stations and is a fairly recent IPO. Formerly called Global Traffic Network, the company recently reported an 8% increase in pro forma revenues to $166.1 million and a 50% increase in earnings per share compared to FY2015. The company also reaffirmed its prospectus forecasts for FY2017 – with earnings expected to soar once again. One for further research I think.

APN Property Group Ltd. (ASX: APD) share price rose 4.4% to 60 cents. The real estate investment manager has been speculated to be involved in a potential deal to own the underlying property of Puma Energy's Australian petrol stations recently – indicating the specialist nature of the property group. The group now has 13 different funds holding 45 properties, but shares look unattractive based on a premium price to net tangible assets, a high P/E ratio and a distribution yield of just 2.9%.

zipMoney Ltd (ASX: ZML) saw its share price jump 3.6% to 72.5 cents and the share price has now doubled since February. zipMoney is a payments provider also offering a "buy it now, pay later" service and says it has more than 50,000 customers and ~2,000 merchant locations. The company recently announced the acquisition of Pocketbook – a personal financial management app with over 250,000 users, which some investors obviously appear to consider a very smart acquisition.

The post 4 more stocks zooming higher on the ASX today appeared first on The Motley Fool Australia.

Have investors given up after all the excitement surrounding Greece in the past few weeks that they've decided to have a breather? Perhaps it's the more than 3% gain by the market this week that has allowed investors and traders alike to take Friday off.

Whatever the case, these 5 stocks aren't feeling the love today…

Novogen Limited (ASX: NRT) has dropped 11.9% to 26 cents as the biotech company announced that its chemotherapy candidate drug Anisina had been granted Orphan Drug Designation for neuroblastoma. Orphan Drug designation is granted to a product or drug when it will be used to treat a rare disease or condition. Novogen has already received orphan drug designation approval for its Cantrixil drug in April this year, and its TRXE-009 drug was proven to kill brain cancer cells in May. But it seems investors haven't taken kindly to the news, with many years of trials still ahead for Anisina.

Metro Performance Glass Ltd (ASX: MPP) is down 5.4% to $1.41. The New Zealand-based company produces a wide range of customised glass products used in residential and non-residential construction, such as windows, doors, showers, mirrors and splashbacks. If you're a shareholder, no need to worry about today's fall – the company went ex-dividend today – which usually means shares will fall (as buyers are no longer entitled to receive the dividend).

Hills Limited (ASX: HIL) has lost 5.2% to 54.5 cents and the company has now lost more than half its value since the beginning of the year. New CEO Grant Logan has only been in the job since the end of May, so he hasn't had much chance to turn around the fortunes of the company, although he was Chief operating officer (COO) prior to that, although only since February 2015. Hills is expecting a rough second half of the 2015 financial year, forecasting full-year underlying net profit of between$11 and $14 million. With $9 million coming in the first half, that doesn't leave much in the second-half. Hills is materially affected (negatively) by the falling Australian dollar.

Boom Logistics Ltd (ASX: BOL) has fallen 4.2% to 11.5 cents. Boom provides crane logistics and lifting solutions but is struggling with contracts in the mining and resources sector. Miners and contractors are all pushing suppliers and sub-contractors for better rates to cut costs. Not only that, but Boom has a bucketload of debt, and recently announced that the second half of the 2015 financial year would be worse than the first as conditions continue to deteriorate in its sectors. Despite that, net tangible assets per share are roughly four times the current share price at ~45 cents.

Mineral Resources Limited (ASX: MIN) is down 4.5% to $5.94. Part miner, part mining services contractor, Mineral Resources owns a 30% stake in the Mt Marion lithium concentrate operation and today announced that China's second-largest lithium producer Jiangxi Ganfeng Co. Ltd would be taking an initial stake of 25% in the project. Partner Neometals Ltd (ASX: NMT) will see its stake drop to 45% from 70% and will receive US$19.5 million – hence Neometals' share price rising 8.7% today. Were investors disappointed Mineral Resources hasn't sold down its stake too?

The post 5 stocks sinking on the ASX today appeared first on The Motley Fool Australia.