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Why these 4 ASX shares dropped lower today

It has been another positive day of trade for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is up a sizeable 1.1% to 6,241.3 points.

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

The Apollo Tourism & Leisure Ltd (ASX: ATL) share price has fallen 3.5% to $1.65 after announcing plans to acquire the Coromal and Windsor Caravan brands and associated raw materials and finished goods stock from Fleetwood Corporation Limited (ASX: FWD). Shareholders seem concerned over this acquisition as these businesses have been a major drag on Fleetwood’s performance of late. Unsurprisingly, the sale has been celebrated by Fleetwood’s shareholders.

The Atlas Iron Limited (ASX: AGO) share price is down almost 2.5% to 4.4 cents. Some investors may have been expecting Mineral Resources Limited (ASX: MIN) to come back with a better takeover offer today, but instead it has terminated its scheme implementation deed. Mineral Resources’ shares have also taken a tumble on the news.

The MotorCycle Holdings Ltd (ASX: MTO) share price has tumbled 7% to $3.19 after the motorcycle retailer provided a trading update after the market closed on Wednesday. According to the release, management expects to report EBITDA of between $19 million and $21 million in FY 2018. While this is up notably on last year’s $14.6 million, it is below the company’s expectations. Management has blamed difficult trading conditions for the underperformance.

The Ramsay Health Care Limited (ASX: RHC) share price has plunged 7% lower to $57.81. At one stage the private hospital operator’s shares were as much as 12.5% lower before rebounding slightly. This morning Ramsay downgraded its full-year core profit growth guidance to just 7% and said it expected current trends to continue in FY 2019. Ramsay has been on my avoid list for some time and looks likely to remain on there for a while to come.

Instead of Ramsay I would be buying one of these top mid cap growth stocks.

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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. 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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