It has been a solid start to the week for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). In afternoon the benchmark index is up 0.3% to 5,790 points.
Unfortunately not all shares have been able to follow the market higher. Four in particular have sunk notably lower today. Here's why:
The McMillan Shakespeare Limited (ASX: MMS) share price has plunged 8% to $12.90 after the salary packaging company revealed that it expects to be served with a class action. Although the full details are not yet known, management understands that a claim may be served based on allegations of unconscionable conduct in relation to a warranty product business operated by a subsidiary of its Presidian business. I would stay clear of the company until the full details are known.
The Mayne Pharma Group Ltd (ASX: MYX) share price has tumbled 4% to $1.05 despite there being no news out of the pharmaceutical company. On Friday Mayne Pharma's shares rallied strongly, but have now given back these gains in full. Until President Trump's policies on drug prices are revealed, I would hold off an investment in the company.
The RCG Corporation Ltd (ASX: RCG) share price has fallen 4% to 79 cents. I suspect today's decline is likely to be related to profit-taking. After all, the footwear retailer's shares have climbed a remarkable 32% month-to-date after a huge sell-off earlier this year.
The Woolworths Limited (ASX: WOW) share price has dropped 3.5% to $25.34. Today's decline is likely to relate to news that retail giant Amazon is building a bricks and mortar food retailing presence in the United States. Were it to do the same in Australia eventually then Woolworths' supermarket could come under significant competitive pressures. The shares of Wesfarmers Ltd (ASX: WES) and Metcash Limited (ASX: MTS) are also lower today.
