In afternoon trade the S&P/ASX 200 index is on course to start the week on a positive note. At the time of writing the benchmark index is up 0.35% to 6,731.1 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The A2 Milk Company Ltd (ASX: A2M) share price is down almost 3.5% to $14.06. Investors have been selling the infant formula and fresh milk company's shares after it announced the surprise exit of its CEO, Jayne Hrdlicka. The release reveals that increasing travel commitments was largely behind her departure. The a2 Milk Company board was quick to stress that it was pleased with the strategy that Hrdlicka put in place, despite investor backlash due to its narrowing margins.
The Elixinol Global Ltd (ASX: EXL) share price is down almost 17% to 72.5 cents. The medicinal cannabis company's shares have been hit hard today following a broker downgrade by Bell Potter. Also weighing on its shares is recent news relating to its exit from Japan and a potential class action in the United States due to alleged mislabelling of product packaging.
The Estia Health Ltd (ASX: EHE) share price is down almost 7% to $2.48. Investors have been selling the aged care provider's shares after the release of a disappointing trading update. Estia Health warned that its occupancy rate fell to 93.5% at the end of November. This is down from 94.1% at the end of August. Management warned that it doesn't expect things to improve quickly due to the impact of the Royal Commission into Aged Care on public sentiment. It expects FY 2020 EBITDA on mature homes to come in between $78 million to $82 million.
The McMillan Shakespeare Limited (ASX: MMS) share price has crashed 12% lower to $12.59 after releasing a trading update. According to the update, the salary packaging company is experiencing more challenging market conditions in Australia, New Zealand and the United Kingdom than expected. As a result, it expects its underlying net profit after tax for FY 2020 to be in the range of $83 million to $87 million. This represents a year on year decline of 2% to 6.5%.
