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Why BWX, Creso Pharma, Mayne Pharma, & St Barbara shares dropped lower

In afternoon trade the S&P/ASX 200 index is on course to bounce back from yesterday’s selloff and finish the week on a positive note. At the time of writing the benchmark index is up 0.25% to 6,508.9 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 BWX Ltd (ASX: BWX) share price is down over 3% to $4.12 despite there being no news out of the personal care products company. However, with its shares almost doubling in value since the middle of August, I wouldn’t be surprised if this share price weakness was down to profit taking from some investors.

The Creso Pharma Ltd (ASX: CPH) share price has crashed almost 14% to 33 cents. This morning the cannabis company’s shares returned from a trading halt following an update on its takeover by PharmaCielo. Investors appear to have been selling its shares instead of waiting for the takeover to complete. The offer is an all scrip deal so will change in value depending on how the PharmaCielo share price performs between now and completion.

The Mayne Pharma Group Ltd (ASX: MYX) share price has fallen 4% to 57.7 cents. This decline may be due to profit taking after a strong share price rise this week following a positive product announcement. On Wednesday the pharmaceutical company announced that it has signed a 20-year exclusive supply and license agreement with Mithra Pharmaceuticals to commercialise a novel oral contraceptive comprising estetrol and drospirenone in the United States.

The St Barbara Ltd (ASX: SBM) share price has dropped 3.5% to $2.74. Investors have been hitting the sell button today after the gold miner released an underwhelming first quarter production update. St Barbara reported lower than normal grades and production disruptions at its recently acquired Atlantic Gold operation.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX 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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