Although it hasn?t been able to hold onto its early gains, it has still been a good day on the markets today with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) putting on gains of 0.7% to 5378 points. Impressively these gains have been spread across the market as a whole, with all sectors in positive territory today.
But there are some shares bucking the trend and heading lower. Here?s why these four are posting declines today:
Flight Centre Travel Group Ltd (ASX: FLT) has wiped out last week?s gains with a 3% decline to $39.05. This could be related to data released…
Although it hasn’t been able to hold onto its early gains, it has still been a good day on the markets today with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) putting on gains of 0.7% to 5378 points. Impressively these gains have been spread across the market as a whole, with all sectors in positive territory today.
But there are some shares bucking the trend and heading lower. Here’s why these four are posting declines today:
Flight Centre Travel Group Ltd (ASX: FLT) has wiped out last week’s gains with a 3% decline to $39.05. This could be related to data released by the Australian Bureau of Statistics that has shown visitor numbers to normally popular destinations like Italy, Greece and Turkey have declined dramatically in the first three months of 2016. I believe this decline means the shares could now be a bargain at less than 15x estimated FY 2016 earnings.
Flight Centre has had a disappointing 2016, with a 2% decline year-to-date
Mesoblast limited (ASX: MSB) shares have dropped around 3% today to $1.95 after the company failed to respond satisfactorily to analyst questioning on Tuesday’s third quarter earnings call. According to the Sydney Morning Herald, its answers have cast doubts on its deal with US biotech giant Celgene and the backing of Teva Pharmaceutical for its heart failure research program. Adding insult to injury, JP Morgan downgraded the shares also.
Mesoblast’s share price is still up by around 5% so far this year.
Prophecy International Holdings Limited (ASX: PRO) shares have continued their decline today by almost 6% to $1.12. Just under a month ago shares of the software company were trading as high as $1.75, but it has been nothing but down since it issued an earnings downgrade recently. Previously the company had forecast full year EBITDA of $8.9 million, but now expects EBITDA to come in between $5 million and $7 million.
Despite these declines Prophecy International has gained 38% in the last 12 months.
Yowie Group Ltd (ASX: YOW) shares have suffered a drop of almost 9% today to 94 cents despite there being no news released to the market. A series of positive market sensitive announcements had driven the share price up by a whopping 75% in the last few weeks, so it could be a case of profit taking today from some investors.
Yowie Group’s share price is still up 55% in the last 30 days, despite today’s decline.
If your portfolio took a little hit today because of one of these shares, then look no further than this tech share which I believe could provide investors with incredible gains in the future.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Prophecy International Holdings Ltd.. 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 Bruce Jackson.
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