ASX sent a "please explain" letter to Acrux re its 18c plunge yesterday to $1.91. No surprise that the company in its response said it had no idea why its shares plummeted 8.6 per cent in one day. But a change in heart by Morningstar analysts may have something to do with it. The AFR reported yesterday (paywall content) that the research house had cut its fair value estimate to $2.50 from $4.20. “Although the testosterone supplementation category has grown significantly in the US during the past 10 years, based on evidence of increases in muscle mass and strength in healthy older men, we continue to view Axiron as largely a lifestyle product and remain cautious given the evolving dynamics of that market and the sensitivity of sales to end-consumer demand,” wrote the analysts, who rate the stock a "hold". The stock is back up 3.1 per cent to $1.97.
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