Tag: Motley Fool

Niche ASX technology company Nearmap Ltd (ASX: NEA) has endured a pretty rough time in recent months. Since climbing as high as $3.22 in late August, its share price has slid all the way back down to just $1.80 as at the time of writing.

And the bloodshed shows no signs of abating – in just this month alone, the Nearmap share price has plunged more than 15% lower. The company’s shares are now getting worryingly close to the 52-week low of $1.50 they reached all the way back in May last year.

Company background

Nearmap is an aerial imagery company that provides up-to-date high resolution images and geospatial data to its business and government clients. Nearmap gives private companies and government agencies the ability to conduct virtual site visits without ever having to physically leave their offices.

This allows people working in fields like engineering, infrastructure development, mining and construction to plan and analyse complex projects.

Recent news

The most recent round of selloffs may have been sparked by Nearmap’s early May announcement that a complaint had been lodged against its American subsidiary in the US District Court in Utah. The complaint was filed on behalf of two companies, Eagle View Technologies and Pictometry International Corp, and alleges that the rooftop estimation technology used by Nearmap’s subsidiary, Nearmap US, infringes upon their copyright.

Nearmap’s announcement went to great lengths to stress that the allegations were “without merit” and didn’t relate to the company’s core proprietary technology. But the Nearmap share price still plunged on the news, dropping more than 20% on the day of the announcement.  

This extended a rough period for Nearmap. Back in February the company had to defend itself against a short seller report issued by J Capital Research – the same research firm that attacked ASX darling WiseTech Global Ltd (ASX: WTC) back in October, 2019.

However, there’s no doubting that the one-two punch of the short-seller report and now these legal concerns – even if neither have any merit – have made some shareholders nervous. This is particularly true in a market where growth shares are under increased pressure due to inflation fears.

Financials

The big question for investors now is whether Nearmap shares have been oversold on the news.

Just two days prior to announcing the allegations made against its subsidiary, Nearmap had upgraded its FY21 annual contract value (ACV) guidance. Based on its strong performance over the first half of the year, the company stated that it now expected full-year ACV to be in the range of $128 million to $132 million (up from its previously issued guidance of $120 million to $128 million).

This came after the company reported strong results for the first half of FY21, driven by record incremental ACV growth in its North American portfolio. Total ACV increased by 21% over the prior comparative period to $112.2 million, while group statutory revenue jumped 18% to $54.7 million.

While some uncertainty remains around the copyright allegations made against Nearmap, the company’s own outlook for the remainder of the financial year clearly remains bullish.

More reading

• 2 ASX tech shares sold off amid legal concerns
• Nearmap (ASX:NEA) share price hit by broker downgrade
• Why the Nearmap (ASX:NEA) share price continues to sink
• Why a2 Milk, Afterpay, Nearmap, & REA Group shares are sinking
• Leading brokers name 3 ASX shares to buy today

The post The Nearmap (ASX:NEA) share price is down 15% this month appeared first on The Motley Fool Australia.

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If you want to construct a balanced portfolio, having a few blue chip ASX shares in there would be a smart move. But with so many to choose from, it can be hard to decide which ones to buy.

To narrow things down for you, I have highlighted two ASX blue chip shares that come highly rated:

REA Group Limited (ASX: REA)

The first blue chip ASX share to look at is REA Group. It is the clear leader in real estate listings in the Australian market. For example, during the third quarter, the realestate.com.au website set new audience records and delivered over 3 million buyer enquiries per month. This was an increase of 82% for the quarter.

This was underpinned by 12.5 million unique visits each month on average and 130.7 million average monthly total visits. This is 3.2 times more visits than the nearest competitor.

Looking ahead, REA Group appears well-placed to continue its fine form. Particularly given the improving housing market, price increases, cost reductions, acquisitions, and new revenue streams.

Macquarie is very positive on the company. Earlier this month, the broker retained its outperform rating and lifted its price target to $179.10.

Sonic Healthcare Limited (ASX: SHL)

Another blue chip to look at is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

Sonic has been a very impressive performer in FY 2021. It delivered impressive profit growth in the first half and appears well-placed to repeat this in the second half.

This is thanks largely to strong demand for COVID-19 testing services globally. At the end of the first half, Sonic had undertaken more than 18 million COVID-19 PCR tests across ~60 Sonic laboratories globally.

Positively, this has been supported by solid performances from the rest of the business, which has rebounded strongly from the pandemic.

One broker that is particularly positive on Sonic is Morgan Stanley. Earlier this month the broker put an overweight rating and $38.60 price target on its shares.

More reading

• 2 ASX 200 shares analysts rate as buys
• ASX winners and losers from the Victorian budget
• 2 ASX dividend shares that could provide steady passive income
• Morgans picks ASX stocks with upcoming “buy” catalysts
• 2 ASX shares I hold that I’d still buy more of: fundie

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S&P/ASX 200 Index (ASX: XJO) iron ore producers may soon see their incomes impacted as China ramps up its attempts to lower the commodity’s price. Currently, the iron ore price is US$197 per tonne – down from its record high of US$229.50 per tonne, which it hit earlier this month.

Previously, the commodity’s price had been rising as a result of China’s increasing demand for steel – of which iron ore is a key component.

On Wednesday last week, China’s cabinet called for measures to reduce the price of commodities, including iron ore.

These measures include an increase to export tariffs in place for some iron and steel products and the removal of export tax rebates for certain steel products. According to China, these changes are an attempt to increase the supply of the commodities by the nation’s domestic market.

Following the announcement of the proposed measures, the price of iron ore fell on Thursday and has continued to slide each day since.

Now, according to reporting from Bloomberg today, China’s demand for minerals, including iron ore, may wane, as indicators show the nation’s construction boom might soon slow.

Can the iron ore price expect more pain?

Bloomberg reported that economic data from last month implied China’s economic recovery and credit impulse – which Bloomberg states represents new credit as a percentage of GDP – may have reached its peak.

This means China could possibly need to slow down its spending in the near future, which may, in turn, put the breaks on its construction boom. If China’s levels of construction stall, its demand for steel would presumably decrease. Due to the laws of supply and demand, this would likely result in an even lower iron ore price.

The recent boom in the iron ore price was largely driven by China’s pandemic recovery strategy, which included a surge in construction. China was already the world’s biggest importer of iron ore prior to the boom, with its insatiable appetite for steel pushing the price of iron ore to an all-time high.

Most of China’s iron ore comes from Australia and, in 2019, 81.7% of Australia’s exported iron ore went to China. Australia produces around 60% of the world’s iron ore. Despite the current trade tensions, China has few options but to import Australian iron ore to satisfy its demands.

However, if Chinese demand does in fact wane, as these latest reports suggest it may, this could be significant for Australian iron ore producers.

Kallanish Commodities Ltd analyst Tomas Gutierrez was quoted in Bloomberg’s report as saying:

We’re still at an early phase of tightening in terms of money reaching projects.
Iron ore demand reacts with a lag of several months to tightening. Steel demand is still around record highs on the back of the economic recovery and ongoing investments, but is likely to pull back slightly by the end of the year.

ASX 200 iron ore producers today

Some ASX 200 iron ore producers were struggling today on the back of the iron ore price falls.

Australia’s 3 largest iron ore producers are BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX:FMG), and Rio Tinto Limited (ASX:RIO).

By the market’s close, their share prices were down 1.97%, 4.3%, and 2.15% respectively.

By comparison, the ASX 200 jumped by 0.16% today.

More reading

• Why is the AMP (ASX:AMP) share price falling again today?
• How to tell if an ASX 200 share is risky
• Why AnteoTech, Fortescue, Synlait, & TPG shares are tumbling lower
• Morgans picks small cap ASX shares with near-term share price catalysts
• The BHP (ASX:BHP) share price keeps falling, could it be an opportunity?

The post Are ASX 200 iron ore shares in for a rough ride? appeared first on The Motley Fool Australia.

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At the current Telstra Corporation Ltd (ASX: TLS) share price, the FY21 dividend yield might be quite sizeable. Could Telstra shares be worth owning?

How big is the Telstra dividend going to be?

Telstra has a few different objectives regarding its capital management framework.

It wants to maximise returns for shareholders. Telstra wants to maintain financial strength. The telco also wants to retain financial flexibility.

With that in mind, there are four principles that are guiding Telstra.

The first is that it’s committed to balance sheet settings that are consistent with an A band credit rating.

The next principle is that it’s going to pay 70% to 90% of underlying dividends as fully franked ordinary dividends.

Third, it’s targeting a capital expenditure to sales ratio of around 12%, excluding spectrum, from FY23.

Finally, Telstra is going to maintain its financial flexibility for portfolio management and strategic investments.

Telstra also intends to pay special dividends. It’s returning in the order of 75% of net one-off NBN receipts to shareholders over time through fully franked special dividends.

In the FY21 half-year result, it declared an interim dividend of 8 cents per share. Telstra also said that it intends to pay total dividends of $0.16 per share in FY21.

Profit guidance

Telstra now expects its total income to be in a range of $22.6 billion to $23.2 billion.

FY21 second half underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be in the range of $3.3 billion to $3.6 billion, compared to $3.3 billion in the first half.

The underlying EBITDA guidance for FY21 of between $6.6 billion to $6.9 billion includes an in-year NBN headwind of approximately $700 million. There’s also an estimated COVID-19 FY21 impact of approximately $400 million.

The guidance range for free cashflow after operating lease payments was recently increased from the range of $2.8 billion to $3.3 billion, up to a range of $3.3 billion to $3.7 billion due to working capital management and the impact of lower hardware revenue.

Is the Telstra share price worth looking at?

Morgan Stanley rates Telstra shares as a buy, with a price target of $4. The broker expects the FY21 and FY22 dividend is going to be $0.16 per share, which translates to a grossed-up dividend yield of 6.7%. Morgan Stanley noted that there was a little boost to funding of mobile networks in the regions within the federal budget.

However, not every broker thinks that Telstra is a buy. Morgans only rates Telstra as a hold with a price target of $3.33 – which is lower than where it is right now. However, Morgans has noted the restructure will enable the telco to realise the value of its infrastructure assets. According to Morgans, Telstra shares are valued at 28x FY22’s estimated earnings.

More reading

• ASX shares in this sector are pushing towards 52-week highs
• TPG (ASX:TPG) shares whacked by cyberattack
• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• 2 ASX dividend shares for income investors
• Telstra (ASX:TLS) slammed for enabling identity theft

The post Could the Telstra (ASX:TLS) share price be worth looking at for its FY21 dividend yield? appeared first on The Motley Fool Australia.

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The AMP Ltd (ASX: AMP) share price continues to go from bad to worse. AMP shares are down a nasty 4% today to $1.08 a share. This puts the embattled wealth manager just a hair above the all-time low of $1.05 a share it reached last week. It also gives up the gains that AMP saw last Friday when the company rose by close to 4%.

This move actually makes AMP one of the worst-performing S&P/ASX 200 Index (INDEXASX: XJO) shares on the market today. Even the ASX 200 is having a day in the green, currently up 0.2% to 7,047 points today.

So what’s going on with AMP?

A disastrous three years

Things have been going downhill for AMP for just over three years now. Ever since the Banking Royal Commission held in 2018, AMP shares have been under pressure. As you might remember, the Royal Commission uncovered systemic misconduct by AMP, including the infamous fees-for-no-service scandal. The company’s plans to right the ship have undergone setback after setback. This resulted in AMP’s post-Royal Commission CEO Francesco de Ferrari resigning from AMP earlier this year.

AMP did manage to orchestrate the sale of its AMP Life division last year. It also successfully offloaded its AMP Capital arm last month. But it wasn’t enough to stop a shareholder revolt at its annual general meeting a few days later, narrowly avoiding a second strike on its remuneration report.

Which brings us to today. Right now, AMP shares are at their lowest levels ever. And that’s saying something for a company that has been listed for more than two decades. The shares are now around 80% below where they were in February 2018, and 92% below where they were at AMP’s ASX listing back in 1999.

So why is the AMP share price falling again today?

It’s not exactly clear why the AMP share price is once again coming under pressure. There are no major news or announcements out of the company that might result in investors hitting the sell button.

AMP has even commenced a share buyback program as of 10 May. This should, in theory, be supporting higher AMP share prices, since share buybacks take shares off the market. And this has been happening with gusto. Just today AMP released a market announcement detailing how it purchased $4.5 million worth of shares last week.

So perhaps today’s share price moves are the result of a large institutional investor exiting an AMP position. Or perhaps a broker issuing a sell recommendation. Though it’s not clear yet, what we do know is that today’s move was probably not what investors were hoping for after Friday’s share price bump. At the current share price, AMP Limited has a market capitalisation of $3.7 billion.

More reading

• How to tell if an ASX 200 share is risky
• Morgans picks small cap ASX shares with near-term share price catalysts
• Expert says buy these ASX expensive defensives as market momentum is peaking
• ASX 200 up 0.1%: Aristocrat results, Zip’s global expansion continues
• ASX 200 Weekly Wrap: ASX whipsaws in volatile week

The post Why is the AMP (ASX:AMP) share price falling again today? appeared first on The Motley Fool Australia.

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Investors may wish to review their exposure to small and mid-cap ASX shares.

It’s important to ensure a well-diversified portfolio. I’m sure you know the old ‘don’t put all your eggs in 1 basket’ cliché. In line with that investors would be wise not to invest solely in the smaller end of the share market.

But, as Bell Asset Management points out, small and mid-cap shares across the world significantly beat their larger peers during the recovery from the COVID driven selloff last year.

Small and mid-cap shares outperform

Small and mid-cap stocks, as measured by the MSCI World SMID Cap Index, have gained 111% since the market lows in March 2020. That handily beats the performance of the all-cap MSCI World Index, which is up 88% in that same time.

According to Bell Asset Management, “This outperformance was also apparent after prior sharp market drawdowns such as the GFC in 2009 and the dot-com bust of 2000 and persisted over a number of years.”

No one can say with any certainty that this same outperformance will be mirrored among ASX shares during the current market recovery. But it’s worth noting and taking some time to review your own allocation to the somewhat smaller end of the ASX.

Not that the blue chips haven’t largely been charging ahead as well.

Earnings smash expectations

As Bell Asset Management noted, more than 66% of the companies contained in the MSCI World Index beat earnings expectations. It said sales came in 3% higher than expectations and earnings were more than 20% above expectations.

The report pointed to the strength of the ongoing global economic recovery along with “tangible results of ongoing stimulus packages and rising consumer spending” as helping drive the exceptional earnings growth.

Looking ahead for ASX shares

With a look to the future, Bell Asset Management’s outlook for equities:

[R]emains favourable given rapidly recovering global economic growth and corporate earnings. With many countries still in the early days of re-opening, we see the potential for continued growth and further earnings upgrades. Inflation concerns have abated somewhat, but we are wary that it remains a potential headwind to profitability.

Happy investing! 

More reading

• Is the Zip (ASX:Z1P) share price in the buy zone?
• How to tell if an ASX 200 share is risky
• I might be getting old, but it has its benefits
• Why AnteoTech, Fortescue, Synlait, & TPG shares are tumbling lower
• The MyState (ASX:MYS) share price is frozen today. Here’s why

The post Why smaller ASX shares could outperform this year appeared first on The Motley Fool Australia.

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The Zip Co Ltd (ASX: Z1P) share price has had a reasonably positive start to the week.

After being up as much as 5% at one stage, the buy now pay later (BNPL) provider’s shares are up 1% to $7.09 late in the session.

Why is the Zip share price rising today?

The Zip share price was given a boost today by news that the company is expanding into the European and Middle East markets. The company will be doing this in the same way it entered the United States market, by acquiring an established player in both markets.

In Europe, Zip is acquiring the shares it doesn’t already own in Twisto Payments for 89 million euros (~A$140 million). Whereas in the Middle East, the company is acquiring the shares it doesn’t already own in UAE-based Spotii for US$16 million (~A$21 million).

Management commented: “Zip has adopted a similar approach to Quadpay, which proved to be highly successful. By initially making low-risk minority investments, Zip is well placed to validate cultural fit and management alignment, stress test the business plan and identify synergies, and plan for integration.”

It also notes that Europe is a $1.1 trillion annual ecommerce market and Twisto’s license can be passported to all 27 member states of the European Union. And while the Middle East market is much smaller, it is growing fast.

The acquisition of Spotii is expected to complete in the third quarter of calendar year 2021, whereas the Twisto acquisition is expected to complete in the fourth quarter.

Judging by the performance of the Zip share price, investors appear happy with the news.

Should you invest?

While brokers have yet to run the ruler over this news, one broker that was already bullish on the Zip share price is Citi.

Its analysts recently upgraded Zip’s shares to a buy rating with an $11.30 price target.

In addition to this, fellow broker Morgans currently has an add rating and $10.39 price target on the company’s shares.

Based on the middle of these price target ($10.85), this implies potential upside of over 50% from where the Zip share price trades today.

More reading

• Why Corp Travel, Domino’s, Kogan, & Zip shares are storming higher
• ASX 200 up 0.1%: Aristocrat results, Zip’s global expansion continues
• Zip (ASX:Z1P) share price higher on European and Middle East expansion news
• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• Why Zip (ASX:Z1P) and these ASX growth shares are highly rated

The post Is the Zip (ASX:Z1P) share price in the buy zone? appeared first on The Motley Fool Australia.

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Risk is one of those words that ASX investors probably use a little too much. Especially considering it can mean different things to different investors.

Classical modern portfolio theory teaches that share market risk has a linear relationship with returns. That is, the higher returns you want, the more risk you have to take. Whilst the merits of this theory are still being debated, it does posit an interesting question: How can you evaluate the risks of investing in a particular ASX share?

Well, an easy way to assess risk is to look at how much money a business makes. It sounds simple, but there are two kinds of companies that you can buy on the ASX. Those that are valued on the money they make today. And those that are priced for the money they might make in the future.

Risk on, risk off

Take ASX 200 growth share Afterpay Ltd (ASX: APT). Afterpay is currently being priced with a market capitalisation of $26.62 billion.

Looking at Afterpay’s full-year results from last year (FY2020), and we can see that the company brought in $44.4 million in earnings before interest, tax, depreciation and amortisation (EBITDA). A $26.6 billion company bringing in $44.4 million in earnings? That valuation sounds a little silly. But those earnings grew at an annual rate of 73%. As such, we can reasonably assume Afterpay is being priced for the money it could make in the future, rather than its current earnings. If Afterpay (hypothetically) grows its earnings at 73% every year for a decade, its valuation starts to look a lot cheaper.

But something like the ASX 200 blue chip Coles Group Ltd (ASX: COL) is a different kettle of fish. Last year, this company reported earnings before interest and tax (EBIT) of $1.39 billion for FY2020. On today’s pricing, Coles has a market capitalisation of $22.24 billion (lower than Afterpay’s, incidentally). This tells us that Coles is probably being priced for the cash it generates today, rather than the growth it might deliver in the future. This makes sense. Coles is an established, mature, dividend-paying business.

Birds in the bush

And that’s where risk comes in. Coles has runs on the board right now. It has shown it has what it takes to generate large volumes of cash flow today. As such, it is fundamentally less risky than Afterpay, which might deliver the same levels of cash one day, if its growth rates continue and everything goes as planned.

Warren Buffett once said of investing that ‘a bird in the hand is worth two in the bush’. This can be applied to what Coles and Afterpay have on offer today. Of course, some investors like chasing companies that might have bushes full of birds. But Buffet implies it’s a whole lot less risky if they’re in the hand.

So if you’re wondering which of your ASX 200 shares are the ‘riskiest’ today, have a look at how much cash they generate, and what they are being priced at. That will give you a great feel for how risk-tolerant your ASX share portfolio is.

More reading

• Morgans picks small cap ASX shares with near-term share price catalysts
• Expert says buy these ASX expensive defensives as market momentum is peaking
• ASX 200 up 0.1%: Aristocrat results, Zip’s global expansion continues
• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• 2 quality ASX 200 tech shares that might be buys

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I spent a decent amount of time out in the garden over the weekend.

Some mowing, but mostly carrying two cubic metres of pine bark from a pile at the end of the driveway and down into the vege patch.

I was replacing the pine bark that got washed down the hill in the recent storms.

The access meant that I couldn’t use a wheelbarrow, so it was two plastic buckets at a time.

Up.

Back.

Up.

Back.

The good news is that it’s done. And that it was finished before the rain.

The bad news is that it turns out I’m not as young as I used to be, and I’m nursing a pulled shoulder muscle.

Speaking of which, I refuse to accept that my advancing years are the cause of my interest in growing veges.

When my son was born, we wanted him to experience having a vege garden.

To appreciate where some of his food came from. 

To be part of the process.

And, hopefully, to make picking a berry off a bush, a tomato off a vine or an apple off a tree something natural.

So, when we moved to the NSW Southern Highlands 5 years ago, we wanted to be able to have a larger vege patch and some more fruit trees.

See… it’s not my advancing age at all!

At least, that’s what I tell myself.

Speaking of veges, winter tends not to be a particularly bountiful time for most of them. Some, yes, but not most.

I planted some peas and beans a few weeks back.

(And some lettuce and other greens, but the snails got them. Little buggers. Snail traps going in next weekend, now I have the new pine bark laid!)

They’re an exercise in patience (the veges, not the snails!).

For a week or two, nothing happens.

And I mean literally nothing. At least nothing that can be seen by the human eye.

Then, a small tendril pokes its way out of the ground.

Then, almost nothing, for another couple of weeks.

Maybe it’s growing, but the pace is so slow, it’s hard to tell.

And a couple of the would-be pea plants die.

But then, you start to notice some growth. 

Or at least it seems like growth.

Then a little more.

Now, the pea plants are a good 20cm high, and the beanstalks are thickening and sprouting more leaves.

Give it a couple of weeks, and the peas will double in height.

Then another couple of weeks, and they’ll double again — growing more in a couple of days than they did in a couple of weeks, just a month or so ago.

Oh come on… surely I’m not going to make that literal a comparison, am I?

The whole ‘pea plant as an analogy for compound interest’ thing?

Surely not.

Yep. I am. (And don’t call me Shirley).

But for what it’s worth, I’m not reaching for a banal analogy specifically because I had a point to make.

In this instance, it was literally the reverse.

Yesterday morning, while I was bucketing pine back, I noticed how suddenly the peas had grown, when they were seemingly much smaller only a few days ago.

But it makes sense.

Root systems spread and go deeper, giving the plants a better and more plentiful source of nutrition.

The leaves multiply, giving the plant ever more surface area to utilise for photosynthesis.

Growth begets growth.

Is it a hackneyed example? Probably.

I can’t recall using it before, or even someone else using the analogy, but I’m sure they have.

Sometimes, though, cliches are cliches for a reason, and analogies are analogies because the similarities are just too clear to ignore.

So here goes:

When you start investing, the dollar value of your compound gains can be reasonably small… but give it time. Remember the maths.

Not every investment will live and thrive. Some of your portfolio will disappoint. You don’t stop growing peas because one plant dies.

As I said, growth begets growth. One leaf becomes two. Two become four. Four become eight. Soon enough, you have 16 times as many leaves as you started with.

Investing requires discipline and a little education, but surprisingly little ongoing effort. Some pruning, some fertilising.. But the returns don’t scale with effort, past a certain point. They scale with time.

You have to let them do their thing. You’re not going to do well as a gardener if you rip out the peas because they haven’t sprouted in the first month, or the apple tree if it hasn’t fruited in the first year. 

Gardening — like investing — rewards steady effort, and a lot of patience. Mostly, they both work best if you get the structure right, then largely leave them alone.

And, like investing, one day, you’ll remember how little you had, when you started, compared to how much you have, after time has done its work. You won’t necessarily notice, day by day, but it’s happening.

And the harvest is more than worth the time, effort and — remember — patience.

Fool on.

More reading

• Why AnteoTech, Fortescue, Synlait, & TPG shares are tumbling lower
• The MyState (ASX:MYS) share price is frozen today. Here’s why
• The Commonwealth Bank (ASX:CBA) share price hits new record highs
• Codan (ASX:CDA) share price tops performance on ASX Tech Index in 2021
• Morgans picks small cap ASX shares with near-term share price catalysts

The post I might be getting old, but it has its benefits appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up almost 0.2% to 7,042.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are tumbling lower:

AnteoTech Ltd (ASX: ADO)

The AnteoTech share price is down 6% to 32.5 cents. Investors have been selling the surface chemistry company’s shares despite an update on its manufacturing plans. According to the release, AnteoTech plans to commence in-house manufacturing in Brisbane to enable the production capability of an additional 12 million test strips per annum. This will bring it total test strip production capability now to 32 million per annum. These strips are to be used in a COVID-19 rapid testing device. Investors may feel the investment is too late in the COVID cycle.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price has fallen 4% to $21.40. This iron ore giant’s shares have come under pressure on Monday following another pullback in the price of the steel making ingredient. According to Metal Bulletin, the spot iron ore price fell a sizeable 5.3% to US$200.72 a tonne on Friday.

Synlait Milk Ltd (ASX: SM1)

The Synlait Milk share price has tumbled 4.5% to $2.85. This follows the release of a second guidance downgrade this morning. According to the release, the dairy processor now expects to make a loss after tax of between NZ$20 million and NZ$30 million in FY 2021. This compares to its previous guidance for a breakeven result, which itself was reduced from a 50% year on year profit decline.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price is down almost 2.5% to $4.92. Investors have been selling the telco’s shares after it revealed that its cloud-based hosting service, TrustedCloud, was compromised in a recent cyber incident. However, it is worth noting that only two customers are believed to have been impacted. Furthermore, the business is being decommissioned and is scheduled to close at the end of August.

More reading

• TPG (ASX:TPG) shares whacked by cyberattack
• Why the AnteoTech (ASX:ADO) share price is racing higher
• Synlait (ASX:SM1) share price on watch after guidance downgrade
• ASX 200 Weekly Wrap: ASX whipsaws in volatile week
• 2 ASX dividend shares with generous yields

The post Why AnteoTech, Fortescue, Synlait, & TPG shares are tumbling lower appeared first on The Motley Fool Australia.

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