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Why Costa, CLINUVEL, Ellex Medical Lasers, & Superloop dropped lower

In afternoon trade the S&P/ASX 200 index has returned to form and has charged notably higher. At the time of writing the benchmark index is up 0.7% to 6,694.6 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are ending the week in the red:

The Costa Group Holdings Ltd (ASX: CGC) share price is down 3% to $4.12. With no news out of the horticulture company, today’s decline appears to have been caused by a broker note out of Citi. Although the broker has retained its buy rating on Costa’s shares, it notes that mushroom prices have been surprisingly weak this year. As this is a key contributor to the company’s earnings, the broker appears a touch concerned with its current forecasts.

The CLINUVEL Pharmaceuticals Limited (ASX: CUV) share price has sunk 7.5% to $31.06 despite there being no news out of the severe skin disorder treatment developer. However, with CLINUVEL’s shares up significantly since the start of the year, I wouldn’t be surprised if some investors were taking a bit of profit off the table. Even after today’s sizeable decline, CLINUVEL’s shares have more than tripled in value this year.

The Ellex Medical Lasers Ltd (ASX: ELX) share price is down 5% to 58 cents after the medical technologies company revealed that its chief executive officer has resigned with immediate effect. It also provided its preliminary and unaudited results for the full year. According to the release, Ellex expects to post an operating loss of between $0.7 million and $0.8 million, excluding restructuring costs of approximately $0.3 million.

The Superloop Ltd (ASX: SLC) share price has continued its slide and is down a further 5% to 94 cents. The telco company’s shares have come under pressure this week after management withdrew its guidance for FY 2020. Superloop’s new guidance, which is highly likely to be downgraded materially, will be provided at the start of next month.

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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO. The Motley Fool Australia owns shares of Ellex Medical Lasers Limited. 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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