In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has just managed to break into positive territory and is up slightly at 6,215.9 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 Fortescue Metals Group Limited (ASX: FMG) share price has fallen 2.5% to $4.38. The iron ore producer has come under pressure this week after low grade iron ore prices tumbled lower. According to Metal Bulletin, the 58% Fe Premium Index was down almost 1% to US$52.02 per tonne overnight. Once again, there appears to be more of an appetite for high grade ore than the low grade ore Fortescue mines.
The Jatenergy Ltd (ASX: JAT) share price has plunged 21% lower to 6 cents after dairy manufacturer Nutritional Choice Australia (NCA) was placed into receivership. NCA manufactures dairy products for sale in China and has an agreement with Jatenergy for its Golden Koala infant formula brand. Management insists that NCA is solvent and this is the result of an internal dispute. It expects NCA to meet its obligations under the manufacturing agreement in full and on time. Clearly some shareholders aren’t convinced. Keep away from this one would be my advice.
The Orocobre Limited (ASX: ORE) share price is down almost 2.5% to $5.18. This morning a broker note out of Morgan Stanley revealed that its analysts have retained their underweight rating and lowly $4.25 price target on the lithium miner’s shares. Morgan Stanley is known to be a lithium bear and has predicted sharp price declines in the future.
The Starpharma Holdings Limited (ASX: SPL) share price has given back some recent gains and is down 2.5% to $1.19. I suspect this decline is the result of profit taking after its shares rocketed higher on Wednesday. That gain was due to the company signing a major license agreement with Mundipharma for VivaGel.
We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.
That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.
We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!
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.