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Why the a2 Milk Co Limited is among 4 shares tumbling today

The S&P / ASX 200 is trading 0.4% lower this afternoon as investors turn cautious ahead of the mid-term elections in the US that could have an effect on government policy. Some widely held shares are falling much further than others though for a variety of reasons, so let’s take a look at what might be behind today’s big fallers.

The A2 Milk Company Ltd (ASX: A2M) share price is down 5.4% to $9.46 despite the company releasing no specific news to the market. a2 investors have had the jitters for a couple of reasons lately including concerns over the new CEO selling $4 million worth of shares last September, despite saying she has great faith in the company’s future. a2 Milk’s key growth market of China is also unpredictable and vulnerable to politics and regulation moving the goalposts at anytime. The stock could remain volatile then.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 5.7% to $15.47 despite the software business releasing no specific news to the market. WiseTech’s CEO Richard White has publicly declared the company is pursuing an aggressive acquisition strategy in order to build scale, with it recently announcing the $1.8 million acquisition of Swedish group CargoIT. On October 25 WiseTech also upgraded its full year revenue and EBITDA guidance, although the share price is probably falling today as investors reassess its lofty valuation.

The BWX Limited (ASX: BWX) share price is down 4.5% to $2.58 as investors continue to digest the group’s recent profit downgrade. The group behind the Sukin-branded natural beauty products recently told investors to expect EBITDA around $40.3 million in FY 2019. However, it expects to earn 70% of this amount over the six-month period June 30 2019, after a weak start to the fiscal year blamed on a number of issues.

The Primary Health Care Limited (ASX: PRY) share price is down 2.5% to $2.74 today, despite the group releasing no specific news to the market. Primary operates general medical, radiology and pathology centres across Australia and in FY 2018 it reported a net profit of $92.3 million on revenue of $1,740 million. It’s one of a number of businesses across the healthcare sector taking a tumble today.

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Motley Fool contributor Yulia Mosaleva has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX Limited. The Motley Fool Australia owns shares of A2 Milk and WiseTech Global. 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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