Why these 5 shares are getting smacked today

Local shares are racing higher again today, following a trend set by international equity markets on Friday. Anticipation of an official interest rate cut by the Reserve Bank of Australia next week is likely also playing a role in today’s rally.

Unfortunately, however, there are a number of shares that are not performing well today, including these five…

Yowie Group Ltd (ASX: YOW) shares have plummeted 19.1% to 72 cents – although they did fall as much as 21.3% earlier – which follows the latest quarterly report from the chocolate manufacturer.

There were positives from the report, but investors may be disappointed by the group’s admission that: “The quarter delivered the third best quarter income received from sales behind December 2015 and March 2016 quarters”. This could imply that the group’s performance diminished in the final quarter, while it could also suggest the company isn’t growing at quite the pace its shares are currently priced for.

Shares of Flight Centre Travel Group Ltd (ASX: FLT) have also come under pressure, falling 3% to $30.90. The fall came after Credit Suisse analysts downgraded their recommendation on the shares to Neutral from Outperform. They also cut their price target by 6.1% to $36.27.

Newcrest Mining Limited (ASX: NCM) shares have dropped 2.1%. Indeed, a fall in the price of gold is acting as a heavy drag on the gold sector as a whole today, impacting shares of companies such as St Barbara Ltd (ASX: SBM) as well (down 2.8%), but Newcrest is also suffering after it missed production estimates during the fourth quarter. Still, it lifted overall production by 0.7% for the year.

Market darling Catapult Group International Ltd (ASX: CAT) is also suffering today. The shares did fall as much as 9.9% to a low of $3.37, although they have since rebounded to $3.57, down 4.6%. Catapult shares have experienced a glorious run so far in 2016, and peaked at $4.29 early last week following a capital raising and two strategic acquisitions.

As much as I love the business, however, the high valuation assigned to it by the market has kept me from buying the shares. It’s possible that other investors are also getting cold feet now, particularly following the dilution effect of the institutional component of the recent capital raising. The shares could certainly rise higher in the long-run, but investors ought to be careful how much they’re willing to pay.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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