Why these ASX shares are in trading halts

Syrah Resources Ltd (ASX:SYR) shares are one of three in trading halts on Tuesday. Here's why…

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The market has continued to sink lower on Tuesday and is down a sizeable 0.9% at lunch

Three shares that have missed out on today's declines due to being suspended or halted are listed below. Here's why they aren't trading today:

Freedom Insurance Group Ltd (ASX: FIG)

The shares of this embattled insurance seller were placed into a trading halt this morning. The company requested the trading halt whilst it prepares an announcement regarding the outcome of its strategic review. The company expects its shares to remain halted until the commencement of trade on Thursday. Freedom launched its strategic review last month after the release of a report by ASIC regarding direct life insurance sales. As a significant proportion of Freedom's upfront commission revenue is derived from the sale of funeral insurance, changes to a number of lead sources would be required to continue to meet the expectations of the regulator. I'm not confident that Freedom will be able to successfully overhaul its business model, so I'm eager to see what it has planned.

Jatenergy Ltd (ASX: JAT)

The shares of this infant formula hopeful have been involuntarily suspended by the ASX after it failed to lodge the relevant periodic report for the period ended June 30 by the due date. Management had forewarned that this would be the case, so it hasn't been a surprise. It advised that the initial consolidation into public company format of the accounts of new subsidiaries acquired during the year has taken longer than expected. In addition to this, the company has experienced a significant change in the accounting personnel. While this is a reasonable excuse, I still expect better from public listed companies.

Syrah Resources Ltd (ASX: SYR)

This embattled graphite miner has placed its shares into a trading halt this morning. According to the notice, management requested the trading halt to allow it to assess the damage from a fire that occurred overnight at the Primary Classifier Screen at Balama. Thankfully no injuries were sustained, but damage to the screen deck, pipe, and electrical equipment has been noted. An assessment of the repair time and the impact on production is now being undertaken. Last week the miner's production output was impacted by later than expected sourcing and fitting of filter cloths, which are routine consumables. With its shares trading close to their 52-week low, it seems some shareholders have understandably had enough of its endless disruptions.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.

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