The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has continued its strong run and is up 0.3% to 6,104 points in afternoon trade.
Unfortunately, not all shares on the market have been able to follow the market higher today. Four shares which have dropped notably lower are listed below:
The Baby Bunting Group Ltd (ASX: BBN) share price has fallen almost 3.5% to $1.31 after the baby products retailer downgraded its earnings guidance due to the distressed trading of competitors and the liquidation of their stock. Baby Bunting now expects FY 2018 EBITDA to be in the range of $18 million and $20 million. Previous guidance was for EBITDA of around $23 million. I expect the company to return to growth in FY 2019 and think investors ought to consider buying on this weakness.
The Blue Sky Alternative Investments Ltd (ASX: BLA) share price has continued its decline and is down a further 5.5% to $2.36. On Monday the embattled asset manager surprised the market when it withdrew its guidance for FY 2018. In addition to this, yesterday’s update revealed that the company has been charging fees on undrawn debt facilities.
The Fleetwood Corporation Limited (ASX: FWD) share price has plunged over 16% to $1.89 after releasing an earnings update. According to the update, the accommodation solutions and recreational vehicle company expects full year underlying EBIT of approximately $5.5 million. Previous guidance has been for full year EBIT marginally ahead of the $14.6 million it achieved in FY 2017. Ongoing losses in its Caravan Manufacturing business are partly to blame.
The Murray River Organics Ltd (ASX: MRG) share price has tumbled over 18% to 27 cents after the organic products company downgraded its earnings guidance yet again. Murray River Organics has only been listed on the ASX for 18 months, but I’ve already lost count of how many times it has cut its guidance. Unsurprisingly it is trading well below its listing price of $1.30. In my opinion its shares are simply not investment grade.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Scott Phillips.
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