The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has bounced back strongly from yesterday’s decline and is on course to have a solid finish to the week. In afternoon trade the benchmark index is up an impressive 1.3% to 6,096.1 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are ending the week in the red:
The Decmil Group Limited (ASX: DCG) share price has fallen 3.5% to $1.06 after the engineering company released a market update. Although Decmil expects second-half revenue from continuing operations to grow 50% on the first-half, it seems some shareholders were expecting even stronger growth. Management has, however, reaffirmed its FY 2019 revenue guidance of over $500 million.
The G8 Education Ltd (ASX: GEM) share price is down almost 3% to $2.35 despite there being no news out of the childcare operator. This latest decline means the G8 Education’s shares have now halved in value since peaking at $4.71 late last year. Concerns over its falling occupancy rate as supply growth outpaces demand growth have largely been behind the share price decline. I would stay clear of the company until it reports major improvements in its performance.
The Primary Health Care Limited (ASX: PRY) share price has continued its decline and is down a further 1.5% to $3.48. The healthcare company’s shares came under significant selling pressure on Thursday after UBS downgraded it to a sell rating with a $3.50 price target. Previously the broker had a buy rating and $4.00 price target on Primary Health Care’s shares.
The Retail Food Group Limited (ASX: RFG) share price has also continued its decline and is 2.5% lower at 56 cents. Shareholders continue to head to the exits over concerns that the embattled food and beverage company could breach its debt covenants this year. For this reason, I would suggest investors stay well clear of Retail Food Group. The future looks decidedly bleak for the company in my opinion.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
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.
- Earnings season: What to expect from the Qantas FY 2020 result – August 3, 2020 6:13pm
- Where to invest $20,000 into ASX shares right now – August 3, 2020 5:18pm
- Beat interest rate cuts with BHP and this ASX dividend share – August 3, 2020 4:52pm