Motley Fool Australia

Why Cleanaway, De Grey, Macquarie, & Zip shares are dropping lower

graph of paper plane trending down
Image Source: Getty Images

The S&P/ASX 200 Index (ASX: XJO) has started the week in a positive fashion. In late morning trade the benchmark index is up 0.4% to 5,882.8 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The Cleanaway Waste Management Ltd (ASX: CWY) share price is down 6.5% to $2.35. Investors have been selling the waste management company’s shares amid reports of poor workplace behaviour by its CEO, Vik Bansal. This morning it responded to the reports, advising that it takes the allegations of misconduct in the workplace very seriously. An investigation was conducted and Mr Bansal has acknowledged that his behaviour should have been better. In a separate announcement, it revealed the retirement of its chief financial officer, Brendan Gill.

The De Grey Mining Limited (ASX: DEG) share price has fallen 3% to $1.39. This morning the gold exploration company announced that it has received commitments for a placement of approximately 83.4 million shares priced at $1.20 per share to raise $100 million before costs. This placement price represents a sizeable 16.4% discount to the last close price. Managing Director, Glenn Jardine, commented: De Grey has never been better placed to achieve our goal of realising a Tier 1 gold project at Hemi.”

The Macquarie Group Ltd (ASX: MQG) share price is down 4% to $120.92. Investors have been selling the investment bank’s shares after it provided guidance for FY 2021. It expects to report a 35% decline in profit in the first half and then a 25% decline in the second half. I estimate that this will mean a full year profit of $1,903 million, down 30.3% year on year.

The Zip Co Ltd (ASX: Z1P) share price has continued its slide and is down almost 6% to $5.64. The buy now pay later provider’s shares have come under pressure this month amid concerns over increasing competition in the United States. This follows PayPal’s announcement of the impending launch of its Pay in 4 product.

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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.

Related Articles…