The S&P/ASX 200 Index (ASX: XJO) has rebounded strongly from yesterday's selloff. In late morning trade the benchmark index is up 3.05% to 5,893.4 points.
Four shares that have failed to follow the market higher today are listed below. Here's why they are dropping lower:
The Auscann Group Holdings Ltd (ASX: AC8) share price is down over 3% to 15.5 cents. Investors appear to have been selling the cannabis company's shares after it was kicked out of the All Ordinaries index. AusCann's shares will be removed from the index at the next rebalance on 22 June 2020. The AusCann share price is now down almost 50% since the start of the year.
The Phoslock Environmental Technologies Ltd (ASX: PET) share price has crashed 13% lower to 39.7 cents. Investors have been selling the water treatment company's shares after it downgraded its revenue guidance for FY 2020. It now expects revenue in the range of $30 million to $40 million. It was previously targeting revenue of $50 million to $70 million this year. Management has concerns that a second wave of COVID-19 could delay projects.
The Kogan.com Ltd (ASX: KGN) share price is down 0.5% to $12.92. Investors may believe the ecommerce company's shares have now peaked after some stellar gains over the last few months. One broker that appears to believe this is the case is Credit Suisse. Late last week it put a neutral rating and $11.72 price target on Kogan's shares.
The Village Roadshow Ltd (ASX: VRL) share price is down almost 2% to $2.13. This follows the release of a takeover update by the entertainment company this morning. According to the release, the company has extended the exclusivity period for its discussions with BGH Capital for a further two weeks. Investors may be concerned that these delays are a sign that discussions are not running smoothly between the two parties.
