It has been a solid start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon trade the benchmark index is higher by 0.7% to 5,571 points thanks to gains in almost all sectors.
But four shares which are going against the grain today and have started the week deep in the red are as follows:
Bega Cheese Ltd (ASX: BGA) shares are down almost 5% to $4.17 despite there being no news out of the company. It really has been a difficult year for Bega due to low dairy prices. In addition to this, Bega's attempt to diversify and launch into the Chinese infant formula market have failed so far. Although its shares have now fallen significantly this year, at 22x estimated FY 2017's earnings I still think they are a little on the expensive side.
Fortescue Metals Group Limited (ASX: FMG) shares have dropped 3% to $6.10 following an announcement related to its joint venture with Vale. Whilst negotiations between the pair are ongoing, it looks "less likely that any transaction will be completed." The joint venture would see the two miners blend their iron ore to match the benchmark quality in the iron ore market.
Mayne Pharma Group Ltd (ASX: MYX) shares are lower again, this time by over 3% to $1.26. The pharmaceutical company's share price was hammered on Friday when it emerged that 20 U.S. states planned to sue Mayne Pharma and five other companies over alleged price-fixing of generic drugs. Management has responded by once again reiterating that any penalties would not be material. But this hasn't convinced all investors it would seem.
Sirtex Medical Limited (ASX: SRX) shares have fallen 4.5% to $14.87 after the company announced that CEO Gilman Wong has gone on temporary leave whilst an investigation into his share selling is undertaken. Legal advisors Watson Mangioni will handle the investigation, Mr Wong denies any wrongdoing. Sirtex is a share I would suggest investors avoid, no matter how tempting it might look after recent declines.
