The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had a positive start to FY 2019 and is up 0.2% to 6,208.3 points in afternoon trade.
Four shares that have failed to follow the market higher today are listed below. Here's why they have started the week in the red:
The Automotive Holdings Group Ltd (ASX: AHG) share price has tumbled over 10% to $2.56 after the company announced that HNA International has terminated the agreement to acquire its Refrigerated Logistics business. Management has advised that HNA has run into liquidity problems. The business has been a bit of a drag on its performance, so this is very disappointing for the company.
The Blue Sky Alternative Investments Ltd (ASX: BLA) share price has continued its slide with an 11% decline to $1.51 after confirming that it received a section 33 notice from the ASIC on June 13. The notice requests information for the purposes of ensuring compliance with section 674 of the Corporations Act 2001 in the period from January 1 2016 to June 12 2018. Blue Sky has stated that this notice does not necessarily mean that it has breached any rules.
The Retail Food Group Limited (ASX: RFG) share price has plunged over 8% to 49.4 cents. I suspect that today's decline is related to profit taking after its shares finished last week with a significant rise. Retail Food's shares rocketed higher after its lenders agreed to waive testing of the financial covenants in FY 2018.
The Sigma Healthcare Ltd (ASX: SIG) share price has been crushed and is down almost 35% to 53 cents after advising that its My Chemist/Chemist Warehouse Group contract would not be renewed following completion in June 2019. Management expects this contract loss will lead to underlying EBIT almost halving in FY 2019/2020 from $75 million to as low as $40 million. While it looks cheap now, I intend to continue avoiding Sigma.
