Why Decmil, Jumbo, Nearmap, & Pioneer Credit shares are tumbling lower

The Jumbo Interactive Ltd (ASX:JIN) share price and the Nearmap Ltd (ASX:NEA) share price are two of four sinking lower on Monday…

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The S&P/ASX 200 index is on course to start the week in the red. At the time of writing the benchmark index is down 0.35% to 6,792.6 points.

Four shares that have fallen more than most today are listed below. Here's why they are tumbling lower:

The Decmil Group Limited (ASX: DCG) share price has crashed over 32% lower to 45.5 cents. This morning the construction and engineering group downgraded its earnings guidance and announced the resignation of its CFO. Decmil revealed that following an independent valuation, its Homeground Gladstone accommodation village will be revalued from $92.4 million to $85.4 million. The devaluation will result in a non-cash, pre-tax charge of $7 million to its results for the half year.

The Jumbo Interactive Ltd (ASX: JIN) share price has continued its slide and is down a further 8.5% to $14.38. This follows a very heavy decline last week after the release of underwhelming guidance for the first half of FY 2020. Due partly to an increase in business development costs, Jumbo expects to report net profit after tax growth of just 13% to $14.3 million. A year earlier it more than doubled its first half profit. This slowdown appears to have alarmed investors. In addition to this, Morgans downgraded its shares to a hold rating this morning.

The Nearmap Ltd (ASX: NEA) share price is down 6% to $2.50 despite there being no news out of the aerial imagery technology and location data company. This decline could be due to short sellers betting against the company due to growing competition and its increasing investment in R&D and sales and marketing. As of the latest data, Nearmap is the 10th most shorted share on the ASX.

The Pioneer Credit Ltd (ASX: PNC) share price has sunk 28% lower to $1.76. This morning Pioneer Credit returned from a four-month suspension after entering into a confirmation deed with its existing senior financiers and Carlyle Group. This will now allow the latter to push ahead with a takeover of the financial services company. Carlyle Croup has offered $1.82 per share, excluding any dividends paid between now and completion.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia has recommended Jumbo Interactive 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 Scott Phillips.

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