Why Are St Barbara Mines (SBM), Premier Investments (PMV), and Myer (MYR) Falling Today?

By Jason McIntosh | 13 January 2025

Investors were met with falling share prices in ASX-listed stocks today, with St Barbara Mines Ltd (ASX: SBM), Premier Investments Ltd (ASX: PMV), and Myer Holdings Ltd (ASX: MYR) taking significant hits. These moves have sparked concerns about the broader market’s challenges and the specific headwinds facing these companies.

---

St Barbara Mines Ltd (ASX: SBM)

St Barbara’s share price fell 11% to 25 cents, catching many investors off guard. The company’s preliminary second-quarter update revealed lower-than-expected gold production, triggering worries about rising costs and potential further weakness.

Key details from the update include:

• Gold production for the quarter totaled just 10,262 ounces, missing expectations.
• High production costs due to lower output were flagged as a concern.
• Revised production guidance now sits at the lower end of the 65,000–75,000-ounce range.

The Technical Picture for SBM
SBM’s share price has been trading below its declining 50- and 100-day moving averages since mid-December, reinforcing a bearish technical outlook. Stocks trading in this position are often avoided by professional investors due to elevated risks. Risk management strategies, such as stop-losses, are essential to protect capital when stocks show prolonged weakness.

---

Premier Investments Ltd (ASX: PMV)

Premier Investments saw its shares tumble over 15% to $27.77 after the company issued a disappointing trading update. The decline reflects the tough retail environment and the mounting pressures of cost-of-living increases across its markets.

Highlights from the trading update include:

• First-half underlying Retail EBIT is expected to fall to $160–$165 million, representing a year-on-year decline of 21.3% to 23.7%.
• Challenging retail conditions have weighed on the company’s financial performance.

The Technical Picture for PMV
PMV has reversed sharply from its recent highs and now trades below its 50- and 100-day moving averages. This technical weakness underscores the importance of position sizing as part of a broader risk management strategy. Professional investors often avoid excessive exposure to any one stock, particularly when technical indicators signal vulnerability.

---

Myer Holdings Ltd (ASX: MYR)

Myer’s share price fell nearly 23% to 88 cents after a trading update highlighted disappointing sales and earnings figures. The results reflect ongoing macroeconomic challenges that are impacting consumer spending.

Key points from the trading update include:

• Total sales for the 22 weeks ended December 28 fell 0.8% to approximately $1,592 million.
• EBIT declined by around 25% to $48 million.

The Technical Picture for MYR
MYR’s share price has also fallen below its 50- and 100-day moving averages, reinforcing its technical vulnerability. Stocks in this position often struggle to regain upward momentum, making risk management tools like trailing stops and disciplined position sizing critical for preserving capital.

---

Broader Market Context

The declines in SBM, PMV, and MYR are happening against a backdrop of overall market weakness. The S&P/ASX 200 Index closed 1.2% lower at 8,203 points, reflecting a challenging environment for many sectors.

---

Key Takeaways for Investors

1. Monitor Moving Averages: Stocks trading below declining moving averages are often considered risky, as they signal technical weakness.
2. Use Risk Management Tools: Strategies like stop-losses and position sizing can help limit exposure to sharp declines, protecting capital during volatile periods.
3. Focus on Uptrends: Motion Trader’s rules-based approach emphasizes investing in stocks with strong upward momentum to avoid the risks seen in today’s falling shares.

---

Today’s sharp declines in SBM, PMV, and MYR serve as a reminder of the importance of disciplined investing. At Motion Trader, we help investors navigate volatile markets with systematic strategies that reduce emotional decision-making and focus on maximising opportunities.

---

Want to Learn More About Managing Risk in the Stock Market?

If you’d like to learn more about how to protect your capital and identify profitable trends, download our free Active Investor Guide below. It’s packed with actionable insights to help you take your investing to the next level.

By staying informed and following a structured rules based investing process, you could make better decisions and build confidence in your trading journey.

Jason McIntosh | Founder, Motion Trader

Jason’s professional trading career began over 3 decades ago. He’s a founder of two stock advisory firms, a listed funds management business, and has helped thousands of investors navigate the stock market. Click here to read Jason’s incredible story of, at age 20, sitting alongside some of the world’s greatest traders (and the life changing experience that came with that).