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Why these 4 ASX shares have started the week in the red

The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a solid start to the week and is up 0.2% to 6,129 points in afternoon trade.

Four shares that have failed to follow the market higher today are listed below. Here’s why they have started the week in the red:

The BWX Ltd (ASX: BWX) share price has fallen 4% to $4.68 despite there being no news out of the personal care products company. The BWX share price has come under pressure of late after a disappointing half-year result. This weak result has also attracted short sellers to the company. As of the most recent ASIC update, almost 11% of the company’s shares were held short.

The Lynas Corporation Ltd (ASX: LYC) share price has fallen a further 8.5% to $2.49. The rare earth producer has fallen notably lower after last week’s surprise Malaysian election result. The previous ruling party had held power for over six decades, leading many in the market to worry that Lynas’ operations in the country could be at risk from political turmoil.

The Medical Developments International Ltd (ASX: MVP) share price has plunged 13% lower to $6.23 after the healthcare company warned investors that sales would be flat at best in FY 2018. Weaker than expected sales in Australia and the United States have weighed on the company’s performance. However, management is optimistic that the global expansion of its Penthrox product will be a big boost to sales in FY 2019. While I am a fan of the company, I would suggest investors sit this one out until sales are at a level that justify its lofty market capitalisation.

The Telstra Corporation Ltd (ASX: TLS) share price has tumbled over 4% to $3.06 after providing a trading update. According to the release, management expects the company to hit the low-end of its EBITDA guidance and the high-end of its cash flow guidance. They also reaffirmed their intention to pay a 22 cents per share dividend in FY 2018, but warned that trading conditions are likely to remain tough in FY 2019.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited and Telstra 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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