The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a mildly positive start to the month and is up 0.1% to 5,833.5 points in afternoon trade.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are starting the month in the red:
The Altura Mining Ltd (ASX: AJM) share price has tumbled 7.5% to 18.5 cents. This morning the lithium miner released its quarterly update. Investors have been hitting the sell button in a hurry despite the company revealing a reasonably positive quarter. During the three months Altura Mining commenced lithium concentrate production and reported consistent recoveries in line with design and DFS forecasts.
The AVZ Minerals Ltd (ASX: AVZ) share price has fallen a further 6% to 6.2 cents. On Wednesday the mineral exploration company released its quarterly update which revealed that its cash and cash equivalents balance is dwindling. After posting an $8.4 million cash outflow from operating activities during the last quarter, AVZ Minerals finished the period with cash and cash equivalents of just $6.5 million. While an offtake deal would be a great funding solution, I suspect that a dilutive capital raising is more likely.
The Lovisa Holdings Ltd (ASX: LOV) share price is down 4% to $7.35. The jewellery retailer’s shares have been extremely volatile this week after the release of a trading update which revealed a decline in same store sales. While I suspect things may get worse before they get better, Lovisa could still be a good long-term investment due to its international expansion plans. But investors may want to hold fire until its half year results release.
The Wagners Holding Company Ltd (ASX: WGN) share price has plunged 15% to $3.59. This morning the construction materials and services business released its annual general meeting presentation which included its outlook for FY 2019. Management expects its first half FY 2019 results to be down on the corresponding period. However, it expects an improvement in the second half, leading to flat year on year earnings.
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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.
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