The S&P/ASX 200 index has had a strong start to the month and is on course to record a solid gain on Monday. In afternoon trade the benchmark index is up 0.8% to 6,229 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 Bubs Australia Ltd (ASX: BUB) share price has returned from its trading halt and is down 2.5% to 78.5 cents. This morning the goat milk infant formula company announced that it has entered into a conditional sales and purchase agreement to acquire Australia Deloraine Dairy in Melbourne. Bubs will pay $35 million in a mixture of cash and shares, with a further payment of up to $15 million if certain performance targets are met. Bubs raised $31.5 million at 65 cents per share to fund the acquisition.
The DuluxGroup Limited (ASX: DLX) share price has dropped over 3% to $7.17 after the building products company was the subject of a bearish broker note. According to a note out of Morgan Stanley, its analysts have resumed coverage on Dulux with an underweight rating and $6.50 price target. The broker thinks its shares are expensive given the tough trading conditions it faces.
The Pilbara Minerals Ltd (ASX: PLS) share price has dropped 4.5% to 75.5 cents. With no news out of the company, I suspect that this decline has been caused by profit taking. After all, the lithium miner's shares were amongst the best performers on the ASX 200 last week after a series of positive announcements.
The Syrah Resources Ltd (ASX: SYR) share price has continued its slide and is down almost 5% to $1.02. The graphite miner's shares have tumbled lower despite a broker note out of Macquarie this morning declaring its shares a buy. According to the note, the broker has retained its outperform rating and $2.70 price target on Syrah's shares.
