Why Bubs, City Chic, Collins Foods, and Queensland Pacific Metals are sinking today

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.3% to 7,248.5 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is down a further 3.5% to 29 cents. Investors have been selling this infant formula company’s shares after a disappointing update at yesterday’s annual general meeting. Bubs’ under-fire CEO, Kristy Carr, revealed that revenue is expected be flat during the first half. That’s despite its revenue growing 29% during the first quarter and management hyping up its US expansion.

City Chic Collective Ltd (ASX: CCX)

The City Chic share price is down a further 15% to 63 cents. This latest decline means the struggling plus sized fashion retailer’s shares are now down 54% over the last three trading sessions. Investors have been hitting the sell button following a very disappointing trading update. City Chic’s sales are down and its margins are being crunched. It also expects to finish the first half with inventory of $168 million to $174 million. That’s more than its currently market cap!

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price has sunk over 18% to $8.19. Investors have been selling this quick service restaurant operator’s shares following the release of its half year results. While Collins Foods delivered strong sales growth, its margins are being hit by cost inflation. In addition, the company revealed that it was pausing the Taco Bell expansion amid its deteriorating performance. It also took an $11.9 million non-cash impairment of eight Taco Bell restaurants.

Queensland Pacific Metals Ltd (ASX: QPM)

The Queensland Pacific Metals share price is under pressure again and down a further 6% to 11.7 cents. Investors have been selling this energy chemicals company’s shares this week after it released the results of the advanced feasibility study on stage 1 of the Townsville Energy Chemicals Hub (TECH) project. The company expects stage one’s capital expenditure to be $1.9 billion. This is almost 10x Queensland Pacific Metals’ market capitalisation.

The post Why Bubs, City Chic, Collins Foods, and Queensland Pacific Metals are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why has the Queensland Pacific Metals share price crashed over 30% so far this week?
• Here’s why this ASX 200 share is crashing 17% today
• Why Bank of Queensland, Bubs, City Chic, and Liontown shares are sinking
• Why is the Bubs share price tumbling 9% to a 52-week low on Monday?
• Why has this ASX All Ordinaries share crashed 45% in 2 days?

Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended BUBS AUST FPO and Collins Foods Limited. 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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