The S&P / ASX 200 (ASX: XJO) is down 0.25% today following on from a soft lead from Wall Street and European markets with investors having few data points to get a read on the short-term direction of share markets.
However, some popular shares are tumbling lower for differing reasons today, so let’s take a look at what might be causing investors to hit the sell button.
The Kogan.com Ltd (ASX: KGN) share price has dropped 4.3% to $2.66 this morning as investors continue to react to the discount online retailer’s October 29 warning that its gross profit margin was falling because foreign website competitors were now able to sell in Australia without paying government services tax. This has hurt the discounter’s competitive position, while the falling Aussie dollar has also been a negative for the importer.
The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 1.5% to $46.27 this morning despite the travel agent with a large global footprint reporting no specific news to the market. Flight Centre shares are now down nearly 33% since it hit a high around $70 per share in August 2018. The shares have fallen in line with markets and because the group’s FY 2019 forecast for profit before tax between $140 million to $150 million for the six months ending December 31 2018 is weaker than analysts hoped for.
The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is down again today on the back of news that analysts have downgraded their forecasts for the business. Domino’s recently updated the market that same-store sales had grown 2.9% for the first 17 trading weeks of FY 2019. This result is no disaster, but probably not good enough for analysts used to higher rates of growth and given the company’s still rich valuation. In fact same-store sales growth appears to be slowing, which means this stock could remain under selling pressure.
The Adacel Technologies Ltd (ASX: ADA) share price is today’s biggest loser being down 40% to 93 cents after the aviation software business reported that it now expects profit before tax for the six-month period ending December 30 2018 to be down a huge 65%-70% on the prior corresponding period. The company expects profit for the full year to be some 25%-30% lower than the prior year.
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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 Adacel Technologies Limited and Flight Centre Travel Group Limited. The Motley Fool Australia has recommended Domino's Pizza Enterprises Limited and Kogan.com ltd. 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.