Here’s why these 4 ASX shares have dropped lower today

It has been a great day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) thanks largely to the rise in oil prices. In afternoon trade the energy sector has propelled the index higher by 1% to 5,466 points.

Unfortunately it hasn’t be a great day for all shares on the market. Four shares which have been going against the trend today and dropping lower are listed below:

Clean TeQ Holdings Limited (ASX: CLQ) shares have dropped 7% to 58.5 cents despite no news out of the industrial air purification and odour elimination solutions provider. Considering its shares have rallied over 270% year to date, I wouldn’t be surprised if today’s decline is the result of a spot of profit taking. After all, at 900x sales its shares are looking extremely expensive.

Lynas Corporation Limited (ASX: LYC) shares have plunged 8% to 5.7 cents following the release of its full year accounts. Although in FY 2016 the rare earths producer reported a 32% rise in sales to $191 million, the cost of those sales came in at $211.4 million. This meant that even though operating costs were reduced year on year, the company still posted a loss of $94.1 million. The way things are at the moment I have doubts about its ability to continue as a going concern.

Programmed Maintenance Services Limited (ASX: PRG) shares have been the worst performer today, dropping 15% to $1.63 after it revised down its FY 2017 earnings guidance. Just two months after giving a reasonably positive outlook for the year ahead at its AGM, management has been forced to downgrade its FY 2017 EBITDA forecast from $120 million to $100 million. Investors appear to have lost faith in management following the announcement and headed for the exits in their droves.

Retail Food Group Limited (ASX: RFG) shares have dropped lower by over 2% to $7.09 after announcing that it has successfully completed a Dividend Reinvestment Plan Shortfall Placement. Approximately 5.2 million shares have been placed with institutional and sophisticated investors at $6.85 per share, raising approximately $35.6 million before costs. According to management the proceeds of the placement will be used to support the multi-brand retail food franchisor’s capital management initiatives.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Retail Food Group Limited. 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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