Australia Markets closed

Why Bendigo and Adelaide Bank, Genworth Mortgage Insurance, Opthea, & Orocobre dropped lower

James Mickleboro
thumbs down, negative, bad, decline, disappointment, sell

The S&P/ASX 200 index is on course to record a decline on Tuesday. In afternoon trade the benchmark index is down 0.2% to 6,575.5 points.

Four shares that have fallen more than most today are listed below. Here’s why they are down in the dumps:

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has fallen 3.5% to $10.73 after brokers responded negatively to the regional bank’s full year results release. According to a note out of Citi, its analysts have retained their sell rating and $9.50 price target on the bank’s shares. It believes the bank benefited from timing during FY 2019, but suspects it will not be so lucky in FY 2020.

The Genworth Mortgage Insurance Australia (ASX: GMA) share price has crashed 11% lower to $2.92. This decline is almost entirely attributable to the mortgage insurance company’s shares trading ex-dividend for its interim and special dividends this morning. At the end of last month the company announced its half year results and a fully franked interim ordinary dividend of 9 cents per share and an unfranked special dividend of 21.9 cents per share. These will be paid to eligible shareholders on August 28.

The Opthea Ltd (ASX: OPT) share price is down 2% to $2.73. The shares of the biologics drug developer focusing on ophthalmic disease therapies have come under pressure this week from profit-taking after more than doubling in value last week following a positive study update.

The Orocobre Limited (ASX: ORE) share price has tumbled 6.5% lower to $2.63. As with Opthea, this lithium miner’s shares stormed higher late last week and appear to have been hit by profit taking this week. So much so, it has almost given back all of last week’s gains now. Orocobre and the rest of the lithium miners raced higher after industry giant Albemarle upgraded its full year profit guidance and spoke positively about lithium prices.

One ASX Stock For An Estimated $US22 Billion Marijuana Market

A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake – it is coming. To the tune of an estimated $US22 billion.

Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.

Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.

AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.

Simply click below to learn more on how you can profit from the coming cannabis boom.

Click here to find out more

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019