Why Lake Resources, Mineral Resources, Nick Scali, and WiseTech shares are dropping

The S&P/ASX 200 Index (ASX: XJO) is back on form and pushing higher on Monday. At the time of writing, the benchmark index is up 0.6% to 8,335.1 points.

Four ASX shares that are failing to follow the market higher today are listed below. Here's why they are falling:

Lake Resources N.L. (ASX: LKE)

The Lake Resources share price is down almost 4% to 7.5 cents. This may have been driven by profit taking following very strong gains from the lithium developer's shares on Thursday and Friday. In fact, even after accounting for today's pullback, Lake Resources' shares are up 47% since this time last week. The gains have been so large that the company was hit with a speeding ticket. When quizzed about the rampant buying, management responded: "LKE is not aware of any information concerning it that has not been announced to the market, which, if known by some in the market, could explain the recent trading in its securities."

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 12% to $40.41. This follows allegations that the mining and mining services company's founder and CEO, Chris Ellison, was running a tax evasion scheme. The company responded to the reports, stating: "The Board is committed to robust and transparent corporate governance. It has engaged external legal counsel to conduct an investigation into this matter and advise the Board. Mr Ellison has cooperated with the investigation and the investigation is well-advanced." It also added that it "has full confidence in Mr Ellison and his leadership of the MinRes executive team."

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is down almost 5% to $14.42. Investors have been selling this furniture retailer's shares today following the release of a trading update at its annual general meeting. Nick Scali warned that freight costs have spiked during the first half and are weighing on its gross margins. As a result, it now expects its first half net profit after tax for Australia and New Zealand to be in the range of $30 million to $33 million. This compares to $43 million in the prior corresponding period, with represents a 23% to 30% reduction lower year on year.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 11% to $108.67. Much like Mineral Resources, this decline has also been driven by a media scandal. This one relates to the logistics solutions company's CEO, Richard White. In response, the company said: "The Board is currently reviewing the full range of matters raised in today's media reports and is actively seeking further information and taking external advice. The Board will continue to meet regularly to consider and monitor the situation, and keep the market updated in line with its continuous disclosure obligations. It is conscious of the potential impacts on the Company and will carefully evaluate all relevant factors in its assessment."

The post Why Lake Resources, Mineral Resources, Nick Scali, and WiseTech shares are dropping appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2024