The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has built on yesterday's strong gain and is up almost 0.7% to 6,079 points in afternoon trade.
Four shares which haven't been able to follow the market higher today are listed below. Here's why they have dropped lower:
The Carsales.Com Ltd (ASX: CAR) share price has fallen 3% to $14.67 following the release of a broker note out of UBS. According to the note, the broker has downgraded the car listings company to a sell rating on valuation grounds and given it a $14.00 price target.
The Caltex Australia Limited (ASX: CTX) share price is down 1.5% to $34.74 after releasing its profit guidance for FY 2017. For the year ending December 31 management expects to report historic cost profit after tax between $620 million and $640 million, compared to $610 million in FY 2016. The market appears to have been expecting better.
The Japara Healthcare Ltd (ASX: JHC) share price has tumbled 5.5% to $2.00 after downgrading its profit guidance. FY 2018 EBITDA is now expected to be 5% to 10% lower year-on-year as a result of lower occupancy levels. Management does, however, expect earnings to be significantly higher in FY 2019 as occupancy levels return to normal levels and developments increase the number of places greatly.
The Retail Food Group Limited (ASX: RFG) share price has continued its decline with a 24% drop to $20.02. This morning the embattled food and beverage company advised that its FY 2018 first-half statutory net profit after tax is expected to be around $22 million, compared to $33.5 million in the prior corresponding period. While its shares do look dirt cheap, I do have concerns they could prove to be a value trap.
