The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a great start to the week and in afternoon is up 0.7% to 5,775 points.
Unfortunately not all shares have been able to follow the market higher today. In fact, four shares in particular have started the week with huge declines. Here's why:
The Auscann Group Holdings Ltd (ASX: AC8) share price has tumbled almost 10.5% to 51.5 cents. Today's decline is likely to relate to last week's capital raising. On Friday the medicinal cannabis company secured a $12 million institutional placement at 50 cents per share. These funds will be put towards the development of cultivation and manufacturing activities, as well as accelerating its medical outreach programme.
The Murray River Organics Ltd (ASX: MRG) share price has fallen an incredible 41% to 36.7 cents after the organic food company downgraded its full-year guidance for the second time this month. Due to unfavourable weather and the impact it has had on its harvest, management expects net profit after tax of between $100,000 and $800,000. Previous guidance had been for $6.6 million. This is one to avoid in my opinion.
The PAS Group Ltd (ASX: PGR) share price has dropped 14% to 50 cents after the retailer provided a disappointing trading update. Lower traffic and an elevated promotional environment has led to a drop in sales from its Black Pepper and Review brands. As a result management expects a weaker second-half performance. Like most retailers, I would avoid PAS Group for the time being.
The Surfstitch Group Ltd (ASX: SRF) share price has plunged 30% to 6.9 cents after the surf wear retailer downgraded its full-year earnings guidance. Management advised that it expects to report an EBITDA loss of between $10.5 million and $11.5 million for the full-year following weak trading conditions in key markets. This is another retailer I would give a wide berth to.
