Why Lake Resources, Mineral Resources, Nick Scali, and WiseTech shares are dropping

These shares are starting the week deep in the red. But why?

| More on:
A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.

Image source: Getty Images

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

The S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher on Monday. At the time of writing, the benchmark index is up 0.6% to 8,335.1 points.

Four ASX shares that are failing to follow the market higher today are listed below. Here's why they are falling:

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down almost 4% to 7.5 cents. This may have been driven by profit taking following very strong gains from the lithium developer's shares on Thursday and Friday. In fact, even after accounting for today's pullback, Lake Resources' shares are up 47% since this time last week. The gains have been so large that the company was hit with a speeding ticket. When quizzed about the rampant buying, management responded: "LKE is not aware of any information concerning it that has not been announced to the market, which, if known by some in the market, could explain the recent trading in its securities."

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 12% to $40.41. This follows allegations that the mining and mining services company's founder and CEO, Chris Ellison, was running a tax evasion scheme. The company responded to the reports, stating: "The Board is committed to robust and transparent corporate governance. It has engaged external legal counsel to conduct an investigation into this matter and advise the Board. Mr Ellison has cooperated with the investigation and the investigation is well-advanced." It also added that it "has full confidence in Mr Ellison and his leadership of the MinRes executive team."

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down almost 5% to $14.42. Investors have been selling this furniture retailer's shares today following the release of a trading update at its annual general meeting. Nick Scali warned that freight costs have spiked during the first half and are weighing on its gross margins. As a result, it now expects its first half net profit after tax for Australia and New Zealand to be in the range of $30 million to $33 million. This compares to $43 million in the prior corresponding period, with represents a 23% to 30% reduction lower year on year.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 11% to $108.67. Much like Mineral Resources, this decline has also been driven by a media scandal. This one relates to the logistics solutions company's CEO, Richard White. In response, the company said: "The Board is currently reviewing the full range of matters raised in today's media reports and is actively seeking further information and taking external advice. The Board will continue to meet regularly to consider and monitor the situation, and keep the market updated in line with its continuous disclosure obligations. It is conscious of the potential impacts on the Company and will carefully evaluate all relevant factors in its assessment."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Amcor, Boss Energy, Brickworks, and Mineral Resources shares are tumbling today

These shares are starting the week in the red. But why?

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

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 AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

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

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why AGL, Imugene, Star, and Woolworths shares are dropping today

These shares are dropping on Thursday. Let's see why investors are selling them.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Share Fallers

Why Corporate Travel Management, JB Hi-Fi, Mineral Resources, and Syrah shares are rising

These shares are having a strong session. Why are investors buying their shares?

Read more »

A guys points his fingers down.
Share Fallers

Why Brainchip, Cettire, Star, and Woolworths shares are being sold off today

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

Read more »

Three guys in shirts and ties give the thumbs down.
Share Fallers

Why Black Cat, BlueScope, Cettire, and Coronado shares are falling today

These shares are missing out on the good times on Tuesday. But why?

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Share Fallers

Why Adriatic Metals, Metcash, Paladin Energy, and Westgold shares are tumbling today

These shares are starting the week in the red. But why?

Read more »