The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is on course to finish the day with a solid gain. In afternoon trade the benchmark index has followed the lead of U.S. markets and is up 0.3% to 5,858 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they have sunk lower:
The Blue Sky Alternative Investments Ltd (ASX: BLA) share price has fallen over 3.5% to $3.68 after it emerged that Morgans has slashed its price target on the investment company's shares from $14.85 to $5.55 after it downgraded its profit guidance. Morgans recently co-led a $100 million capital raise at $11.50 per share for Blue Sky. I'm not convinced the worst is over yet, so would suggest investors keep away from its shares.
The CYBG PLC (ASX: CYB) share price has tumbled over 4.5% to $5.30 after the bank warned that it expects to increase its provisions for legacy payment protection insurance (PPI) costs by £350 million. As a result, CYBG expects to recognise a pre-tax charge of £202 million in its income statement for the six-month period ended 31 March 2018. This will result in a pro forma reduction in its Common Equity Tier 1 ratio of approximately 100 basis points, putting it below its guidance range of 12% to 13%.
The Village Roadshow Ltd (ASX: VRL) share price has sunk almost 8% to a multi-year low of $2.46. Despite Australia being in the middle of a tourism boom, this entertainment company has continued to experience weakness in its Cinema and Theme Park segments. This means that management expects to breakeven at best in FY 2018. Equity analysts at Macquarie cut the price target on its shares down to $2.55 from $3.50 in response to the news.
The Vocus Group Ltd (ASX: VOC) share price has fallen 3% to $2.23 despite there being no news out of the telco company. Investors have been left thoroughly underwhelmed by the company's performance over the last 18 months and have unsurprisingly been heading to the exits. While its shares do look cheap now, I think there are better options in the telco industry.
