So far so good for the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). At lunch the index is higher by 0.3% to 5,787 points thanks to gains across most sectors.
But not all shares have been climbing higher today. Four shares in particular have stood out with notable declines. Here’s why they’ve dropped lower:
Bellamy’s Australia Ltd (ASX: BAL) shares have continued their sharp decline with a 15.5% drop to $4.52. The infant formula manufacturer has now fallen by over 30% since it came out of its suspension earlier-than-expected on Wednesday. With profits likely to be down by 60% in FY 2017, this sell-off is unsurprising.
Bubs Australia Ltd (ASX: BUB) is another infant formula manufacturer that has been sold off today. Its shares have dropped 13% to 20.5 cents as profit taking continues to weigh on its shares following its meteoric rise last week. Two notable profit takers have been majority shareholders Ellerston Capital and WF Investment. Ellerston reduced its stake from 13.7% to 5.3% and WF Investment has reduced its stake to 5.8% from 8.3%.
Collins Foods Ltd (ASX: CKF) shares have fallen 3.5% to $6.07 despite no news out of the company. Prior to today its shares were up almost 40% in the last three months, so today’s decline could also be down to profit taking. I think the operator of KFC restaurants in Australia has a bright future, especially with its expansion into Germany.
Medusa Mining Limited (ASX: MML) shares have plunged 12% to 46.5 cents after revising its full year production guidance. Previously management anticipated production of 105,000 to 115,000 ounces of gold with an all-in sustaining cost of US$1,000 to US$1,100 per ounce. This has been revised to 85,000 to 95,000 ounces of gold with all-in sustaining costs of between US$1,250 to US$1,350 per ounce. Disappointingly these costs are now above the spot price of gold which stands at US$1,191 an ounce.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Bellamy's Australia. 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.