Why Bigtincan, Over the Wire, Resolute, & Uniti shares are dropping lower

Bigtincan Holdings Ltd (ASX:BTH) and Over the Wire Holdings Ltd (ASX:OTW) shares are two of four dropping lower on Wednesday…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has been a very positive day for the S&P/ASX 200 Index (ASX: XJO) on Wednesday. In late morning trade the benchmark index is up 0.8% to 6,654.5 points.

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

Bigtincan Holdings Ltd (ASX: BTH)

The Bigtincan share price is down 3% to $1.08. Investors have responded unenthusiastically to the company's acquisition announcement this morning. Bigtincan has entered into a binding agreement to acquire unified sales enablement platform provider, ClearSlide, for US$16.25 million (A$22.6 million) in cash. ClearSlide is expected to report annualised recurring revenue (ARR) of ~US$5.2 million in 2021.

Over the Wire Holdings Ltd (ASX: OTW)

The Over the Wire share price is down a further 6% to $3.98. Investors have been selling the telecommunications, cloud and IT solutions provider's shares since the release of a trading update yesterday. That update revealed that the company expects to report a 22% to 28% increase in EBITDA in the first half. However, this has been boosted by acquisitions. Its existing businesses will deliver lower EBITDA than a year ago.

Resolute Mining Limited (ASX: RSG)

The Resolute share price has come under pressure and is down 2.5% to 77.5 cents. Investors have been selling Resolute and other gold miners on Wednesday after the spot gold price pulled back overnight. This has led to the S&P/ASX All Ordinaries Gold index trading 0.9% lower at the time of writing.

Uniti Group Ltd (ASX: UWL)

The Uniti share price is down 1% to $1.70. This morning the telco announced the details of the share purchase plan from its equity raising to fund the acquisition of the Telstra Velocity assets from Telstra Corporation Ltd (ASX: TLS). Uniti is aiming to raise $10 million at the lower of $1.50 per new share or the volume weighted average price of its shares during the five trading days up to and including 20 January plus a 2% discount.

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 and recommends BIGTINCAN FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Over The Wire Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia has recommended BIGTINCAN FPO and Over The Wire Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »