It certainly has been a great day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index has rebounded strongly from yesterday's selloff and is up over 0.9% to 6,273.9 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The A2 Milk Company Ltd (ASX: A2M) share price has tumbled 3% to $10.49 following the release of a trading update and its outlook for FY 2019. Judging by the share price reaction, investors appear disappointed with the update despite the infant formula and dairy company announcing revenue growth ahead of the guidance range given in May. When the dust settles I think this could be a buying opportunity.
The Freedom Foods Group Ltd (ASX: FNP) share price has plunged 8.5% to $5.86 after the health foods company provided a surprisingly weak market update. According to the release, Freedom Foods now expects full-year sales to come in at $353 million, compared to the high end of its guidance range of $360 million to $380 million. Management has predicted a strong FY 2019, but it hasn't been enough to keep some shareholders on board.
The Lovisa Holdings Ltd (ASX: LOV) share price has recovered from a sizeable drop in earlier trade and is down just 2.2% now to $10.71. The fast fashion jewellery retailer's shares came under pressure after Morgan Stanley downgraded them to an underweight rating largely on valuation grounds. The broker did, however, raise its price target all the way from around $5.00 to $9.50.
The Village Roadshow Ltd (ASX: VRL) share price has returned to trade and crashed 15% lower to $1.85. This morning the entertainment company completed the institutional component of its fully underwritten 5 for 26 pro rata accelerated non-renounceable entitlement offer to raise approximately $51 million. Village Roadshow is raising the money at a significant discount of $1.65 per share and will use it to reduce its borrowings.
