The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a disappointing start to the week and is down 0.7% to 5,782 points in afternoon trade.
Four shares that have fallen more than most on Monday are listed below. Here’s why they are starting the week in the red:
The Afterpay Touch Group Ltd (ASX: APT) share price has fallen 5% to $6.78 after the AFR reported that some leading brokers are questioning the fintech company’s valuation. According to the report, both Credit Suisse and Shaw and Partners have put out bearish notes in recent dates describing Afterpay as a sell. Bell Potter, however, believes the sell-off is a buying opportunity.
The Argosy Minerals Limited (ASX: AGY) share price has tumbled almost 6% to 32 cents. This morning the prospective lithium miner provided an update on its Rincon lithium project in Argentina. The update appeared to be positive so this could be a case of investors buying the rumour and selling the fact.
The Galaxy Resources Limited (ASX: GXY) share price is down over 4% to $3.14. The lithium miner’s shares have fallen despite Citi responding positively to its full-year results release last week. According to the broker note, Citi has retained its buy rating and $4.60 price target after Galaxy delivered a result in-line with its expectations. I thought it was a strong result and believe Galaxy’s Mt Cattlin asset is a real cash cow.
The Vita Group Limited (ASX: VTG) share price has plunged over 5% to $1.40. Today’s decline could be in relation to Telstra Corporation Ltd (ASX: TLS) admitting that it misled up to 100,000 customers by charging them for content like games and ringtones many didn’t know they had bought. Many of these customers may have signed up at Vita-operated Telstra retail stores. I would stay clear of Vita because of this and its weakening core business.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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 Scott Phillips.