Why Coles Group Ltd is among 4 shares falling today

The S&P / ASX200 (ASX: XJO) is down around 0.25% in Tuesday morning trade after producing its best day of gains in two years yesterday. Overnight US and international markets also posted strong gains on renewed optimism about the chances of the US and China resolving their current trade disputes.

However, there are several shares in Australia moving in the wrong direction today. So let’s take a look at what could be behind the price action.

The Ltd (ASX: KGN) share price is down 5.8% to $3.24 today despite the discount online retailer releasing no news to the market. Kogan shares have rallied 22% over just the last month and today’s downward price move is probably the result of investors taking a breather. On November 26, Kogan announced it will launch a Kogan Money credit card in partnership with banker Citigroup, while it has also reently launched a superannuation fund, and home loan products as it moves into the financial services space. Shares could remain volatile in the year ahead.

The Mayne Pharma Group Ltd (ASX: MYX) share price is down 2.2% to 97 cents today despite the pharmaceutical drugs business releasing no specific news to the market. In its core US market there’s a lot of focus on potential regulatory or legislative changes bringing down drug prices in an issue that has put pressure on its valuation. In FY 2018 Mayne Pharma’s revenue fell 7% to $530.3 million, however the stock has been steadily climbing over the past year as investors bet the worst of its problems may be over.

The Galaxy Resources Limited (ASX: GXY) share price is down 2.5% to $2.71 as it and other lithium miners such as Orocobre Limited (ASX: ORE) remain volatile due to the opaque nature of lithium prices. Lithium is not currently traded on public exchanges or synthetic futures markets which means data providers are reliant on prices reported by miners to estimate average prices. This means investors struggle to get a good read on the outlook for the miners and produces volatile share prices.

The Coles Group Ltd (ASX: COL) share price is down 2% to $11.40 today as investors worry about the fact that the group has been immediately targeted by short sellers after its listing. Short sellers are professional investors who are betting on a share price falling for any number of reasons including overvaluation. Coles only has 1.4% of its shares sold short, but this on top of a couple of negative broker ratings is putting the shares under pressure for now.

Motley Fool contributor Yulia Mosaleva has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended 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.

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