It has been a good start to the week for local investors with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rising 0.71% to 5,904 points.
Every sector, with the exception of gold, is trading in positive territory today with the strongest gains coming from the financial, energy and materials sectors.
Despite the positive mood, a number of shares are really struggling for investor support today, including:
Reject Shop Ltd (ASX: TRS)
The Reject Shop share price has crashed another 4.3% today as investors continue to offload the shares following last Friday's disappointing market update. Unfortunately, the discount retailer is battling difficult trading conditions which has led to a 4% decline in same-store-sales for the half-year to date. The company is also facing a $5 million second-half loss if the tough times continue. Shares of the Reject Shop have now fallen more than 63% over the past 12 months.
MICHAELHLL FPO (ASX: MHJ)
The Michael Hill share price has fallen 3.5% today after the jewellery retailer provided a weaker-than-expected trading update. For the nine months to 31 March 2017, group same-store-sales growth came in at just 0.8%, while total sales increased by 5.5% thanks to the opening of 18 new stores. The company noted that trading conditions in Australia and New Zealand continue to be challenging with relatively flat same-store-sales for the third quarter. On a more positive note, Michael Hill's Canadian business is performing strongly with comparable sales growth of 7%.
Orocobre Limited (ASX: ORE)
The Orocobre share price has dropped more than 3.2% today, despite the absence of any significant news from the lithium miner. The shares have been heavily shorted over recent weeks and the company is now the most shorted share on the ASX with more than 20% of its shares in the hands of short sellers. It comes after Orocobre was forced to cut its FY17 production guidance due to problems with its pond inventory management system. Shares of Orocobre have now fallen more than 41% from their 52-week highs.
Vita Group Limited (ASX: VTG)
The Vita Group share price has plunged more than 3.4% today as investors continue to grapple with the possibility that Telstra Corporation Ltd (ASX: TLS) could take back control of some of its retail stores. Vita Group has denied that this is the case, but shareholders are understandably nervous considering the company was recently forced to renegotiate some of its contract terms with Telstra. Although the shares have now fallen around 46% over the past six months, I think investors should expect further volatility until the issue is completely resolved.
