In afternoon trade the S&P/ASX 200 Index has bounced back from a weak start and is up almost 0.2% to 6,232 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they have sunk lower:
The AVITA Medical Ltd (ASX: AVH) share price has crashed 25% lower to 35 cents despite there being no news out of the global regenerative medicine company. However, as I noted yesterday, a 575% increase in its share price since the start of the year had driven its market capitalisation to almost $900 million. Which certainly made its shares look overvalued considering its revenue of $1.8 million in the first half.
The Base Resources Limited (ASX: BSE) share price has tumbled almost 10% to 28 cents after the mineral sands producer provided its FY 2020 production guidance. According to the release, the company expects production to fall significantly in FY 2020. This is due to the lower heavy mineral grade of the South Dune orebody, depletion of stockpiled heavy mineral concentrates during the transition of mining operations to the South Dune, and normal uncertainties associated with mining a new orebody.
The Crown Resorts Ltd (ASX: CWN) share price has dropped 9% to $12.80 after US giant Wynn Resorts pulled the plug on its takeover approach for the casino and resorts operator. Crown advised that Wynn has terminated all discussions with it concerning any transaction, possibly after details of the confidential approach leaked out.
The Sims Metal Management Ltd (ASX: SGM) share price has fallen 2.5% to $10.72 after the scrap metal company provided an update on its strategic growth plan. Part of its growth strategy includes nearly doubling the non-ferrous business and growing the ferrous business by 40% in the United States within the next six years. Judging by its share price decline, investors don't appear convinced by the plan.