Why AnteoTech, Fortescue, Synlait, & TPG shares are tumbling lower

Fortescue Metals Group Limited (ASX:FMG) and TPG Telecom Ltd (ASX:TPG) shares are two of four tumbling lower on Monday….

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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.

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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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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