So far it has been another solid day for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is higher by 1% to 5,469 points.
Unfortunately not all shares are climbing higher today though. Four shares in particular have made notably sharp declines. Here's why they've sunk…
CYBG PLC CDI 1:1 (ASX: CYB) shares are down 3.5% to $4.72 following the release of the bank's preliminary full year results after the market closed yesterday. Although the bank has delivered its first statutory profit before tax in five years, the market doesn't appear to be overly impressed. With management admitting that the full impact of Brexit is not yet fully understood, investors might be better off giving CYBG a wide berth for now.
Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) has fallen 7% to $7.73 a day after delivering a record half-year profit. A research note out of Deutsche Bank reveals that its analysts downgraded the respiratory care device provider to a hold rating due to concerns over its ongoing legal battle with rival ResMed Inc. (CHESS) (ASX: RMD) over patent infringements. I believe the company looks attractive at this price, but would suggest investors hold out until the legal matter is resolved.
Resolute Mining Limited (ASX: RSG) shares have dropped 3% to $1.27 after the gold price gave back some of yesterday's gains. At lunch the spot gold price had fallen to US$1,205 an ounce, down 1.2% from yesterday's high. With a December rate hike in the United States looking a near certainty now, I would not be surprised to see the gold price fall below US1,200 an ounce in the next couple of weeks.
Vita Group Limited (ASX: VTG) shares have continued to fall, this time by 3.5% to $2.90. This now means the retailer's shares have lost over 40% of their value in the last 30 days. The drop appears to relate to fears over the new terms being negotiated for the retail stores it operates on behalf of Telstra Corporation Ltd (ASX: TLS). Whilst at 12x full year earnings it looks to be a bargain, investors might be best waiting for the new terms to be announced before jumping in.
