The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) on course to make it two successive days of gains. In afternoon trade the index is almost 0.4% higher at 6,058 points.
Four shares which haven’t been able to follow the market higher today are listed below. Here’s why they have sunk lower:
The Galaxy Resources Limited (ASX: GXY) share price is down almost 2% to $3.53. This morning the lithium miner was downgraded to an underperform rating by equity analysts at Macquarie. Furthermore, the broker has slapped a $3.00 price target on its shares. This is due largely to its belief that from 2019 lithium prices may come under pressure as supply outstrips demand.
The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 2% to 67.2 cents. The pharmaceutical company’s shares had been on a tear up until this week and have now given back the majority of their year-to-date gains. Investors appear nervous ahead of earnings season due to the pricing pressures it has faced. Industry giant Teva Pharmaceuticals will report its earnings on February 8, this should give investors an idea of what to expect from Mayne Pharma.
The Murray River Organics Ltd (ASX: MRG) share price has plunged almost 8% to 36 cents. This morning the healthy snacks company announced another surprise write-down. A recent stocktake uncovered further shortcomings by previous management with the quality and categorisation of dried vine fruit which has been previously identified and reported on. This has led to a $4 million write-down on top of its previously announced $4.3 million write-down. I would stay clear of Murray River Organics.
The St Barbara Ltd (ASX: SBM) share price is off almost 4% to $3.70. Although many of the gold miners have pushed higher today, St Barbara has fallen into the red following a broker downgrade. Credit Suisse has downgraded the gold miner to a sell rating with a $3.00 price target on valuation grounds.
St Barbara may be a sell, but these hot tech shares are strong buys in my opinion.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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.