In afternoon trade the benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back from yesterday’s decline and is up over 0.2% to 6,019.6 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have dropped lower:
The A2 Milk Company Ltd (ASX: A2M) share price has dropped 2.5% lower to $9.64 despite there being no news out of the infant formula and dairy company. But with its shares rallying strongly over the last week, I suspect a spot of profit taking could be taking place today. This could arguably be a good buying opportunity for patient investors.
The ALS Ltd (ASX: ALQ) share price has tumbled 5.5% to $7.14. After the market closed on Monday the testing services company released its full-year results which fell short of the market’s expectations. The main culprit was the underperformance of its Life Sciences business. One broker that was less than impressed was Ord Minnett. According to a note out of the broker, it has retained its lighten rating and lowly $6.50 price target
The Kogan.com Ltd (ASX: KGN) share price has fallen 4.5% to $8.60. Today’s decline could be related to news that eBay Australia plans to offer Australian consumers unlimited deliveries and returns through its eBay Plus subscription. Investors appear to be concerned that eBay’s offering could potentially steal customers away from the fast growing ecommerce company and stifle its growth.
The Sundance Energy Australia Ltd (ASX: SEA) share price is down 4.5% to 6.6 cents after oil prices continued their decline. According to Bloomberg, WTI crude oil is down a further 1.5% to US$66.81 a barrel. Brent crude oil has, however, stopped the rot and pushed slightly higher to US$75.53 a barrel. Recent declines mean that Sundance Energy’s shares have now given back all their gains and are down since this time last year.
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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 A2 Milk. The Motley Fool Australia has recommended Kogan.com ltd. 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.