The benchmark S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has had another disappointing day. In afternoon trade the index is down around 0.3% to 5,871.
Four shares which have acted as a drag on the market today are listed below. Here’s why they have tumbled lower:
The Adacel Technologies Limited (ASX: ADA) share price has fallen 11% to $2.25 after the air traffic management systems provider downgraded its profit guidance. Due to a delay in the award of certain contracts, management has downgraded its full-year profit before tax guidance to between $7 million and $7.5 million. Whilst this is disappointing, today’s sell-off could be an opportunity for patient investors.
The Eclipx Group Ltd (ASX: ECX) share price has dropped 3% to $3.68. This morning the fleet management and novated leasing company announced a 20% jump in half-year NPATA to $31.2 million. As well as this the company advised that it plans to acquire Grays Ecommerce Group Ltd (ASX: GEG) for $178.9 million. Judging by the reaction, investors appear to think that Grays Ecommerce’s shareholders are the biggest winners from the transaction.
The Fortescue Metals Group Limited (ASX: FMG) share price has tumbled 5% to $4.95. According to Business Insider, iron ore futures have crumbled during trade today, falling almost 8%. Unfortunately I think this could only be the beginning of greater declines due to lower demand and increasing supply. For this reason I would avoid Fortescue for the time being.
The Mesoblast limited (ASX: MSB) share price has dropped a massive 15% to $2.67 despite there being no news out of the regenerative medicine business. Even after today’s decline Mesoblast’s shares are still up a remarkable 86% year-to-date.
If your portfolio took a hit today I would suggest you give it a boost with these quality growth shares. Each of them could be just what your portfolio needs to take it to the next level.
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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of Adacel Technologies Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.