The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is having a positive day thanks partly to strong gains in the industrial sector. In afternoon trade the index is up 0.2% to 5,769 points.
Unfortunately not all shares have been able to follow the market higher. The four shares below have been a major drag on the market today. Here’s why they have been crushed:
The AP Eagers Ltd (ASX: APE) share price has tumbled almost 6% to $7.52 after the auto retailer updated its first-half guidance. Lower vehicle sales nationwide means AP Eagers expects its half-year profit to decline by between 7% and 9% on the prior corresponding period. One positive is the management expects to maintain its generous dividend.
The Cann Group Ltd (ASX: CAN) share price has fallen almost 11% to 46.5 cents despite there being no news out of the medicinal cannabis company. Unfortunately the majority of pot stocks appear to have fallen out of favour with investors lately, leading to reasonably sharp industry-wide declines. Whilst the industry is very promising, I feel it is a touch too soon for an investment.
The St Barbara Ltd (ASX: SBM) share price has dropped almost 6% to $2.87 following a broad sell-off of the gold miners. After a solid increase overnight on Monday, the gold price has now retreated and given back all its gains. The spot gold price is currently fetching US$1,252 an ounce. I would suggest investors avoid the gold miners at this point in time.
The Sigma Healthcare Ltd (ASX: SIG) share price has been crushed and is down 27% to 86.5 cents. This morning Sigma announced that it is taking legal action against The My Chemist/Chemist Warehouse Group after the group advised of plans to source certain products from a different supplier. With the current supply agreement due to end mid-2019, I can’t imagine it will be renewed. This could leave a big gap in Sigma’s future earnings unfortunately.
These 3 stocks could be the next big movers in 2020
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