It has been a poor start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is lower by 1% to 5,392 points, with almost all sectors in the red following the result of Italy's referendum.
Four shares which have fallen more than most are below. Here's why they have plunged today:
Bellamy's Australia Ltd (ASX: BAL) shares have continued their decline and have fallen a further 3% to $6.66. Today's decline is likely to be attributable to a research note out of Citi which reveals that its analysts have put a sell rating on the infant formula manufacturer with a price target of $6. Today's decline means Bellamy's shares have now fallen 50% year to date.
Catapult Group International Ltd (ASX: CAT) shares have dropped 5% to $2.74. Investors don't appear to be impressed with the sports analytics company's revenue growth guidance of between 21%-30% in FY 2017. I think Catapult has a bright future ahead of it and that at the current price it looks to be great value for those that are prepared to make a long-term buy and hold investment.
Galaxy Resources Limited (ASX: GXY) shares have plunged 6% to 44.5 cents despite there being no news out of the lithium miner. The majority of ASX-listed lithium miners are lower today, possibly over concerns that demand isn't as great as expected. A report in the Financial Times last week revealed that the global market for battery chemical lithium is now expected to be fairly balanced for the next four to five years. This could put a cap on skyrocketing prices.
Vita Group Limited (ASX: VTG) shares have dropped 10% to $2.42. Vita Group operates retail stores on behalf of telco giant Telstra Corporation Ltd (ASX: TLS). In recent weeks the company's shares have come under heavy selling pressure after it announced that it was negotiating new remuneration terms with Telstra. Whilst these negotiations are now complete, the true impact they will have on earnings growth is unclear. If the impact is minimal, Vita Group could prove to be an absolute steal at the current price. I would however suggest investors wait until the release of its interim results next year before making an investment.
