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Why Somnomed Limited is among 4 shares falling today

Global share markets have been rallying nicely over the past two days and this is helping to drive the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) higher today. At lunchtime, the benchmark index was 0.8% higher to 5,918 points.

The financials sector has been the biggest contributor to today’s gains, while the mining and gold sectors have struggled as a result of falling commodity prices.

A number of shares have missed out on today’s rally, including:

Beadell Resources Ltd (ASX: BDR)

The Beadell Resources share price has plunged more than 19.4% today after the gold miner released a weaker-than-expected third quarter update. Unfortunately, production volumes fell 11% over the prior corresponding period, while production costs increased significantly due to the strengthening of the Brazilian Real and additional capital expenditure. The bad news has also been compounded by the falling gold price and change in sentiment which saw a number of gold shares get crushed today.

Automotive Solutions Group Ltd (ASX: 4WD)

The Automotive Solutions share price hit the skids today after the auto-parts maker issued a massive profit downgrade. Although the company has only been listed on the ASX for four months, it has been forced to slash its EBIT prospectus forecasts by around 70% due to increasing competition, deferral of customer orders and rising marketing costs. This is clearly a bad look for a recently listed company and the market has been swift to react, sending the shares down by more than 60%.

Somnomed Limited (ASX: SOM)

The Somnomed share price has fallen 2.6% today after the company reported weaker-than-expected third quarter results from its U.S business. Unfortunately, the company now expects the volume of devices sold globally to reach 67,000 (revised from 71,000), combined revenues to be $50 million to $53 million (compared to $56 million) and EBITDA to be a loss of $1.5 million (revised from break-even). Despite the downgrade, the sleep treatment company still looks well positioned to deliver improved results over the next few years.

Blackmores Limited (ASX: BKL)

The Blackmores share price has dropped more than 2.3% today, despite the absence of any news from the company. I suspect some investors are selling out of the vitamin maker and buying a2 Milk Company Ltd (Australia) (ASX: A2M) instead after the milk company announced another upgrade to its full-year sales guidance. Unlike Blackmores, a2 Milk does not appear to have been impacted by the proposed changes to Chinese import laws and this has seen strong support for the shares over recent months.

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Motley Fool contributor Christopher Georges owns shares of Blackmores Limited. The Motley Fool Australia owns shares of A2 Milk. 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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