Why Guzman Y Gomez, MacMahon, Strike Energy, and WiseTech shares are sinking

These shares are under pressure on Monday. But why?

| More on:
A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.

Image source: Getty Images

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the new financial year with a small decline. At the time of writing, the benchmark index is down 0.3% to 7,741.8 points.

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

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is down 8% to $25.20. This may have been driven by concerns over the quick service restaurant operator's lofty valuation. Shortly after listing, the Mexican food chain had a $3 billion valuation. This meant that its shares were trading on a crazy multiple of 500x estimated FY 2025 earnings. This latest decline means that Guzman Y Gomez's shares are now down almost 20% from their high. And with short sellers loading up on its shares, there could be further declines to come.

Macmahon Holdings Ltd (ASX: MAH)

The Macmahon share price is down almost 9% to 26.5 cents. This morning, this mining services company revealed that it had significant exposure to the collapse of gold miner Calidus Resources Ltd (ASX: CAI). It said: "Macmahon provides mining and drill and blast services to Calidus at their Warrawoona mine. Macmahon's preliminary assessment of net current exposure under the contract is circa $33.9 million. Macmahon also holds an equity interest in Calidus listed shares with a value of $5.7 million at the close of trading on 28 June 2024." Calidus called in administrators on Friday.

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is down 13.5% to 24.2 cents. Investors have been hitting the sell button after the energy company released an update on the status of the gas supply agreement for West Erregulla with Wesfarmers Ltd (ASX: WES). Due to delays receiving environmental approvals, the firm gas supply agreement has reverted to back to an original agreement. This means that the fixed gas price that had been agreed under the firm gas supply agreement will revert to the option price as calculated under a gas sales option agreement.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 5% to $95.18. While the logistics solutions company announced more insider sales on Friday evening, this is generally seen as a positive by the market. That's because the sales indicate that the company is (at least) performing in line with its guidance for FY 2024. The decline may have been driven by a broker note out of Goldman Sachs. It has slapped a neutral rating and $91.00 price target on its shares.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Wesfarmers, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Wesfarmers and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Dexus, Mayne Pharma, Nufarm, and Treasury Wine shares are falling today

These shares are having a tough session on Thursday. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why James Hardie, Mayne Pharma, Nufarm, and Resimac shares are falling today

These shares are having a tough time on hump day. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Kogan, Monash IVF, OFX, and ResMed shares are falling today

Why are these shares taking a tumble today? Let's find out.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why Appen, DroneShield, Gentrack, and New Hope shares are dropping today

These shares are starting the week in the red. But why?

Read more »

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Dexus, Dusk, Fletcher Building, and Paladin Energy shares are falling today

These shares are ending the week in the red. But why?

Read more »

Couple look at a bottle of wine while trying to decide what to buy.
Consumer Staples & Discretionary Shares

Treasury Wine shares: Buy, hold, or sell? Here's Macquarie's take

What is Macquarie forecasting for Treasury Wine shares amid the CEO’s unexpected exit?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Newmont, NRW, Peet, and Treasury Wine shares are dropping today

Let's find out why investors are selling down these shares on Thursday.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Aristocrat, EBR, GQG, and Insignia shares are tumbling today

These shares are having a tough time on hump day. Let's find out why.

Read more »