6 stocks sinking on the ASX today

All Ordinaries sinks 0.7%, but these 6 were heavily sold off

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With the All Ordinaries (INDEXASX: XAO) (ASX: XAO) down 0.7%, there were plenty of companies sold off by investors today.

Here are six that fared the worst.

Tap Oil Limited (ASX: TAP) fell 12.5% to 24.5 cents, as the company reported that it was having a disagreement over its staged acquisition payments in an oil concession. The company, Northern Gulf, is now demanding payment of US$14.6 million, which Tap is disputing. What's worse is that Northern Gulf has also failed to pay Tap amounts owing due to production from the oil concession. Sounds like Tap is losing some control of its investments in the Manora oil field offshore Thailand.

GUD Holdings Limited (ASX: GUD) lost 10.3% to close at $7.91. The maker of Sunbeam consumer appliances, Davey water-related products and Oates cleaning products recently presented to investors, highlighting 3 poorly performing businesses, Sunbeam, Davey and Dexion. The problem is that those three operations bring in nearly 70% of the company's revenue. Until GUD can turn things around, the share price looks expensive – even after today's fall.

RCR Tomlinson Limited (ASX: RCR) dropped 10% to $1.62. The construction and engineering company hasn't released any news to the market for some time now, so we might assume that the turmoil surrounding the iron ore miners and the effect it is having on mining services stocks has finally caught up with RCR. The company generates 28% of revenues from its resources division but has been falling.

Gold miner Silver Lake Resources Limited (ASX: SLR) closed down 8.1% at 17 cents. Gold was down slightly overnight to US$1,192.89 an ounce, so it seems like a bit of an overreaction if traders exited Silver Lake because of that. Instead, it may just be investors have had enough of the company – with shares down 61% in the past year and have gone nowhere this calendar year.

Iron ore miners BC Iron Limited (ASX: BCI) and Mount Gibson Iron Limited (ASX: MGX) fell 7.7% to 18 cents and 6.9% to 27 cents respectively. Investors are obviously ignoring the 4% jump in the iron ore price overnight – with some analysts already calling for BC Iron to shut up shop, rather than lose shareholders more money. As I wrote earlier today, if even the big miners aren't worthy of your investment, you might want to steer well clear of the juniors.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »