The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has managed to build on yesterday's gain with a solid move higher on Thursday. In afternoon trade the benchmark index is up 0.7% to 6,078 points.
Four shares which haven't unfortunately been able to follow the market higher today are listed below. Here's why they have dropped lower:
The Acrux Limited (ASX: ACR) share price has fallen 3% to 16 cents following the release of its quarterly Axiron sales update. According to the release, Eli Lilly and Company reported global Axiron net sales of US$7.5 million for the December quarter. This compares to sales of US$39.9 million in the prior corresponding period. Eli Lilly terminated its licensing agreement for Axiron late last year following the loss of its patent and concerns over whether testosterone products could lead to an increased risk of heart attack or stroke.
The Godfreys Group Ltd (ASX: GFY) share price has plunged almost 12% to 34 cents after the retailer provided the market with a disappointing trading update. Due to a non-cash impairment of goodwill and intangibles, the company expects to post a first-half net loss after tax of around $59 million. The company also advised that like for like sales for the half-year were 6.2% lower than the prior corresponding period. Considering its poor financial performance, high debt levels, and lack of relevance with consumers, I fear this is a retailer in grave danger of going under.
The Lynas Corporation Ltd (ASX: LYC) share price has fallen over 3% to $2.09. After the market closed on Wednesday management advised that bondholders have converted a further portion of their convertible bonds from debt into equity. This reduced its JARE Facility down to US$170 million, but added a further 13.3 million shares to the registry.
The Virgin Australia Holdings Ltd (ASX: VAH) share price has tumbled 7.5% to 25 cents. I suspect that today's decline is likely to be related to a broker note out of Credit Suisse. That note revealed that the broker has downgraded the airline from an outperform rating to neutral with a reduced price target of 25 cents.
