In afternoon trade the S&P/ASX 200 index has given back the majority of its morning gains but is still trading higher. At the time of writing the benchmark index is up 0.1% to 6,746.3 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are sinking lower:
The Blackmores Limited (ASX: BKL) share price is down over 2% to $85.18. Investors appear nervous ahead of the health supplements company’s annual general meeting later this week. The company is likely to provide investors with an update on its performance in the first quarter. Based on its guidance, it looks set to be a weak quarter.
The Cleanaway Waste Management Ltd (ASX: CWY) share price has continued its slide and is down 5% to $1.76. Investors have been selling the waste management company’s shares following the release of its AGM presentation on Friday. At the event management warned that its first half profits would be flat on the prior corresponding period. This is due to a combination of lower economic activity, softness in commodity prices, and a reduction in local Queensland volumes.
The Sims Metal Management Ltd (ASX: SGM) share price has crashed almost 11% lower to $9.01 after the release of a trading update this morning. Last month the scrap metal company warned that its first half profits would be down materially on the prior corresponding period. Unfortunately, market conditions have deteriorated further since then. In light of this, management now expects to post a first half EBIT loss of up to $30 million.
The Strike Energy Ltd (ASX: STX) share price has dropped lower again and is down a further 4% to 25 cents. The energy company’s shares have tumbled lower since advising that its West Erregulla 2 well test clean-up activities are now complete. A flow rate of approximately 69 million standard cubic feet per day of gas was achieved over a one-hour period. Judging by the share price reaction, this appears to have fallen short of expectations.
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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 Blackmores 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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