It has been a disappointing start to the week for the S&P/ASX 200 index. In afternoon trade the benchmark index is down 0.5% to 6,757.7 points.
Four shares that are falling more than most today are listed below. Here’s why they are starting the week in the red:
The Cann Group Ltd (ASX: CAN) share price has crashed 11% to 88 cents. This appears to have been driven by a weak set of quarterly updates from North American cannabis companies. Another negative was news that cannabis giant Aurora Cannabis is cutting back its production plans due to weaker demand. It has an offtake agreement with Cann Group.
The Galaxy Resources Limited (ASX: GXY) share price has fallen almost 4% to $1.03. This morning the lithium miner released its corporate strategy and projects update. One of Galaxy’s goals is to advance its Sal de Vida project in 2020. It is targeting the final investment decision for the project by Q2 to Q3 of 2020 with its first production in 2022.
The Prospa Group Ltd (ASX: PGL) share price has crashed 27.5% lower to $2.80 after downgrading its full year guidance. The online lender revealed that it expects calendar year 2019 originations to be above its prospectus forecast at $574.5 million. However, revenue and EBITDA are expected to fall well short of its prospectus forecasts. Management explained that the variance is largely due to the premiumisation strategy exceeding its forecast. This has led to increased demand for its solutions from premium credit quality customers who pay lower interest rates over longer terms.
The Smartgroup Corporation Ltd (ASX: SIQ) share price has sunk 12% lower to $9.67. This morning the salary packaging company announced the impending retirement of its long-serving CEO, Deven Billimoria. He will be replaced by the company’s current CFO. It also provided its earnings guidance for FY 2019 and is expecting NPATA growth of 3.8%.
The post Why Cann, Galaxy, Prospa, & Smartgroup shares are sinking lower today appeared first on Motley Fool Australia.
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Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. 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