In afternoon trade the S&P/ASX 200 index has given back the majority of its morning gains but is just about keeping its head above water. At the time of writing the benchmark index is up a few points to 6,752.8 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they have sunk lower:
The ARQ Group Ltd (ASX: ARQ) share price has crashed 32% lower to 37 cents. Investors have been hitting the sell button in a panic today after the IT company, formerly known as Melbourne IT, downgraded its full year earnings guidance materially. Due to market conditions softening significantly for its Enterprise division, management has downgraded its group underlying EBITDA guidance to be in the range of $16.8 million to $19.3 million. Previously it was targeting $27 million to $30.5 million in FY 2019.
The Fortescue Metals Group Limited (ASX: FMG) share price is down almost 4% to $8.64. This share price weakness appears to have been caused by a broker note out of Morgan Stanley this morning. According to the note, the broker has downgraded the iron ore producer’s shares to an underweight rating with a price target of $7.85. It made the move largely on valuation grounds.
The iSignthis Ltd (ASX: ISX) share price is down a sizeable 10% to 94.5 cents. The under pressure payments company’s shares have tumbled lower again today after the AFR reported that there were a number of suspicious transactions flagged ahead of iSignthis achieving a $5 million revenue target that supported the issue of a significant number of performance shares.
The Wattle Health Australia Ltd (ASX: WHA) share price has sunk 16.5% lower to 59.5 cents. The infant formula company’s shares have crashed lower today after a series of strong gains over the last few trading days led to its share price almost doubling in value. The rise was so sharp that the ASX queried it. Management advised that it knew of no company-specific reason for the rise and put it down to increased investors interest following M&A activity.
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