The S&P/ASX 200 index has given back a portion of its early gains, but remains on course to start the week with a gain. In afternoon trade the benchmark index is up 0.3% to 6,732 points.
Four shares that have failed to follow the market higher are listed below. Here’s why they are tumbling lower:
The Cann Group Ltd (ASX: CAN) share price has crashed 22.5% lower to 57 cents. Late last week the cannabis company revealed that it would be staging the commissioning of its Mildura facility in response to weaker demand. Investors appear concerned that Cann Group may never generate the level of revenue it forecast previously.
The Collection House Limited (ASX: CLH) share price is down 6% to $1.14. Investors have been selling the receivable management company’s shares after it announced the sudden departure of its managing director and chief executive officer, Anthony Rivas. Collection House revealed that it has promoted CFO Doug McAlpine to the top job with immediate effect.
The Nufarm Limited (ASX: NUF) share price is crashing lower on Monday and is down 18% to $5.07. Investors have been selling its shares due to a costly accounting error. When reconciling accounts with German customers for the 2019 calendar year, Nufarm identified additional sales rebate claims from customers. This is expected to result in a $9 million impact to its first half EBITDA. In addition to this, it warned that trading conditions have been difficult in FY 2020.
The Wagners Holding Company Ltd (ASX: WGN) share price is down 7% to $2.04. This morning the building supplies company provided an update on its dispute with Boral Limited (ASX: BLD). According to the release, Wagners was expecting a resolution of its dispute with Boral in court this week. However, the trial has been adjourned until February.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Scott Phillips.