The S&P/ASX 200 index is on course to record another strong gain on Wednesday. In afternoon trade the benchmark index is up 0.6% to 6,830.3 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:
The AusCann Group Holdings Ltd (ASX: AC8) share price has crashed 9% lower to 20 cents. This means that the cannabis company’s shares are now trading at its IPO price. Which is some distance from its highs of ~$1.80 in early 2018. Investors have been selling off pot stocks recently due to concerns over weaker than expected demand, high levels of competition, and an oversupply of cannabis.
The Clinuvel Pharmaceuticals Limited (ASX: CUV) share price is down 4.5% to $27.49 despite there being no news out of it. This decline appears to be a combination of profit taking from some investors and rising short interest. According to the latest ASIC data, Clinuvel’s short interest has jumped to 6.6%. Short sellers may believe that Clinuvel’s shares are overvalued at this level.
The Comet Ridge Ltd (ASX: COI) share price has plunged 11% lower to 20 cents. This morning the coal seam gas exploration company’s shares returned from a trading halt after announcing plans to raise $13 million. These funds will be used to accelerate its gas to market plans. Comet Ridge is raising the funds at 19 cents per share.
The Rural Funds Group (ASX: RFF) share price has fallen 5.5% to $1.81. The agriculture-focused real estate property company’s shares are sinking lower after a potential asset sale hit a stumbling block. According to the AFR, Kaizen Capital believes the sale price of the RF Poultry business to ProTen is too cheap. Rural Funds managing director, David Bryant, has reportedly rejected the claims. He said he was confident the transaction was in the best interest of all unitholders.
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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 RURALFUNDS STAPLED. 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.