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Why Cann, Objective Corp, Sigma, & Western Areas are dropping lower today

James Mickleboro

The S&P/ASX 200 index has given back the majority of its morning gains and is trading just a fraction higher this afternoon. At the time of writing the benchmark index is up slightly at 6,868.6 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are ending the week in the red:

The Cann Group Ltd (ASX: CAN) share price has continued its slide and is down a further 5.5% to 44 cents. Investors have been selling the company’s shares since it revealed that it would be staging the commissioning of its Mildura facility in response to weaker demand for cannabis products. Cann is holding its annual general meeting today and appears to have failed to convince shareholders to stick with it.

The Objective Corporation Limited (ASX: OCL) share price is down 2.5% to $5.87. This appears to be down to profit taking after a strong gain this week. Investors were fighting to get hold of the tech company’s shares this week following its annual general meeting. At the meeting the company provided an update on its full year outlook. Management expects material growth in revenue and profitability again in FY 2020.

The Sigma Healthcare Ltd (ASX: SIG) share price is down a further 3.5% to 68.5 cents. The pharmacy chain operator’s shares have come under pressure in recent days following the release of a broker note out of Citi. According to the note, the broker has downgraded Sigma’s shares to a sell rating with a 65 cents price target. Citi made the move largely on valuation grounds.

The Western Areas Ltd (ASX: WSA) share price has fallen 3.5% to $2.81. Investors have been selling the nickel producer’s shares after a pullback in the nickel price overnight. According to CommSec, the spot nickel price fell 2.6% to US$13,968.5 a tonne. Soft demand from the stainless steel industry has been blamed on its weakness this month.

The post Why Cann, Objective Corp, Sigma, & Western Areas are dropping lower today appeared first on Motley Fool Australia.

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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