Although it has given back some of its earlier gains, the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has pushed higher again today and is up 0.6% to 5,883 points in afternoon trade.
Four shares which haven’t been able to follow the market higher today are listed below. Here’s why they are sinking lower:
The Perseus Mining Limited (ASX: PRU) share price has fallen almost 4% to 34.7 cents. Yesterday the gold miner released a reasonably mixed quarterly production update. This led to UBS retaining its neutral rating and 40 cents price target on the gold miner’s shares.
The Thorn Group Ltd (ASX: TGA) share price has fallen a further 9% to 82.5 cents. The financial services company has come under heavy selling pressure after it downgraded its full-year profit guidance on Monday. Management now expects earnings to be 30% lower than in FY 2017. I would suggest investors avoid its shares no matter how cheap they appear.
The WAM Capital Limited (ASX: WAM) share price is down 3.5% to $2.40. The vast majority of today’s decline is related to WAM Capital’s shares going ex-dividend this morning. Its 7.5 cents per share fully franked dividend is expected to be paid to shareholders on October 27.
The XERO FPO NZX (ASX: XRO) share price has tumbled 3.5% to $31.06 despite there being no news out of the accounting software company. I suspect today’s decline is a case of profit taking. After all, Xero’s shares recently hit an all-time high of $32.44. While I think Xero could be a great buy and hold investment, I’d hold out for a better entry point.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Xero. 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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