In afternoon trade the S&P/ASX 200 index is on course to start the year on a positive note. At the time of writing the benchmark index is up 0.2% to 6,698.6 points.
Four shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:
The Perenti Global Ltd (ASX: PRN) share price is down 2% to $1.59. The mining services company’s shares have come under pressure in recent weeks following the loss of a key equipment hire contract with Ghana Manganese Company. This led to management downgrading its FY 2020 underlying NPAT guidance from $140 million to between $115 million and $120 million. Perenti was previously known as Ausdrill.
The Perseus Mining Limited (ASX: PRU) share price is down almost 2% to $1.14 after the gold price edged 0.1% lower. In addition to this, I suspect that profit taking could be weighing on the gold miners after some stellar gains earlier this week. Perseus isn’t the only gold miner dropping lower. In afternoon trade the S&P/ASX All Ords Gold index is down by 0.65%.
The Polynovo Ltd (ASX: PNV) share price has sunk 3.5% lower to $1.90. The medical device company’s shares are tumbling lower despite there being no news out of it. However, with its shares up over 220% in 2019, this could also be down to profit taking from some investors.
The Sezzle Inc (ASX: SZL) share price has crashed almost 17% lower to $1.74. The buy now pay later company’s shares have come under pressure after it confirmed that the California Department of Business Oversight (DBO) has issued a public statement regarding its intention to not approve an application by Sezzle for a California Financing Law license to make loans. Industry rival Afterpay Ltd (ASX: APT) has had its application approved. Sezzle intends to apply again and is optimistic it will find a resolution.
The post Why Perenti, Perseus, Polynovo, & Sezzle shares are tumbling lower appeared first on Motley Fool Australia.
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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 AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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. 2020