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Why these 4 ASX shares dropped lower today

In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has continued its positive run and has pushed a further 0.6% higher to 6,019 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they have dropped lower:

The Avz Minerals Ltd (ASX: AVZ) share price has dropped 11% to 18.7 cents a day after providing an update on its drilling results at the Manono project in the Democratic Republic of the Congo. Although the lithium-focused mineral exploration company delivered positive results, I feel the market still has a lot of questions over the viability of the project due to its location.

The Graincorp Ltd (ASX: GNC) share price has fallen 5.5% to $8.40 after the grains exporter’s shares were downgraded by two leading brokers. Yesterday Bell Potter downgraded its shares and today Credit Suisse has downgraded Graincorp to a neutral rating from outperform. It has, however, held firm with its $9.06 price target. The broker appears concerned that recent weather could reduce its crop.

The Ramsay Health Care Limited (ASX: RHC) share price has tumbled 4% to $62.18 after it emerged that CEO, Craig McNally, offloaded almost $4.8 million worth of the private hospital operator’s shares last week. Although Mr McNally still has a considerable holding and was selling for tax reasons, it hasn’t gone down well with shareholders. I’m bearish on Ramsay’s prospects so would suggest investors consider following Mr McNally’s lead and selling shares.

The Servcorp Limited (ASX: SRV) share price has plunged 16% lower to $4.01 after the serviced office provider released a trading update. According to the release, Servcorp has downgraded its full-year profit before tax guidance to between $30 million and $35 million compared to prior guidance of $45 million and $55 million. I’m surprised the selloff wasn’t more severe after such a shocking downgrade.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited and Servcorp Limited. 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.

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