In afternoon trade the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course to start the week on a positive note. At the time of writing the benchmark index is up 0.3% to 6,182.3 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have started the week in the red:
The Australian Mines Limited (ASX: AUZ) share price has continued its decline and is down a further 13% to 4 cents. This means that the gold and base metals exploration company’s shares have now fallen by 50% since the end of last month. Australian Mines’ shares have continued to fall despite reporting positive results from reverse circulation drilling at the Greenvale Deposit of its Sconi project last week.
The Estia Health Ltd (ASX: EHE) share price has plunged 18% to $2.42 after Prime Minister Scott Morrison announced a royal commission into Australia’s aged care system. The inquiry will focus primarily on residential and in-home aged care for seniors, but will also cover care for young people with disabilities. Estia Health has welcomed the royal commission, but shareholders certainly haven’t. The rest of the aged care industry has fallen deep into the red today.
The Kidman Resources Ltd (ASX: KDR) share price has dropped a sizeable 14.5% to $1.08 after the lithium miner received notification that the Perth mining warden has recommended the WA minister for Mines and Petroleum refuse the applications for exemption from minimum expenditure obligations for tenements held by its subsidiaries at the Mt Holland Project. The worst-case scenario is that Kidman has to forfeit the tenements, though I feel that would be reasonably unlikely.
The Slater & Gordon Limited (ASX: SGH) share price has tumbled 5% to $2.90 despite there being no news out of the law firm. I suspect that today’s decline is down to profit taking from investors after Slater & Gordon’s shares surged higher last week following the launch of its Get Your Super Back campaign. I would suggest investors stay clear of the company, especially given how management has repeatedly warned shareholders that its shares may be overvalued.
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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.