Why Bathurst Resources, Megaport, Orocobre, & Splitit shares are dropping lower

Megaport Ltd (ASX:MP1) and Splitit Ltd (ASX:SPT) shares are two of four dropping lower on Tuesday. Here's why…

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to bounce back strongly from Monday's decline. At the time of writing, the benchmark index is up 1.1% to 6,736.5 points.

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

Bathurst Resources Ltd (ASX: BRL)

The Bathurst Resources share price is down 12% to 6.8 cents. This may have been driven by profit taking after some strong gains in recent trading days. In fact, its gains were so strong it prompted a price query by the ASX. The company believes the strong rise its share price was driven by favourable movements in the Hard Coking Coal Premium Low Vol benchmark. It notes that this increased from US$102/tonne to US$124.50/tonne over the last week.  

Megaport Ltd (ASX: MP1)

The Megaport share price has fallen over 2.5% to $12.65 following the release of its second quarter update. The global elastic interconnection services provider reported a 10% increase in underlying monthly recurring revenue (MRR) quarter on quarter to $6.3 million. This brought its quarterly revenue to $18.7 million. It appears as though some investors were expecting stronger growth from Megaport.

Orocobre Limited (ASX: ORE)

The Orocobre share price is down 1.5% to $5.04. This may be due to profit taking after a very strong gain by the lithium miner's shares over the last few months. Prior to today, the Orocobre share price had doubled in value since the start of November. A rebound in the lithium price and an increasingly positive outlook for the battery making ingredient were behind this rise.

Splitit Ltd (ASX: SPT)

The Splitit share price is down 5% to $1.43 despite there being no news out of the buy now pay later provider. But as with Orocobre, the Splitit share price has been on form recently, which could have led to some profit taking today. Thanks largely to its deal with Google in Japan, the Splitit share price was up 30% in the space of a month prior to today.

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 MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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