Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Shares the FTSE 100 Should Beat Today

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is flat, having made up for this morning's losses to achieve a one-point gain as of 10:45 a.m. EST.

Fears expressed by Federal Reserve Chairman Ben Bernanke that the U.S. might hit its debt ceiling before the end of February dampened otherwise optimistic news of further quantitative easing in Japan aimed at boosting that country's economy.

The FTSE 100 is still pretty strong, but a few of its constituents are not doing so well. We look at three that are falling today.

Interim results sent shares in IG Group Holdings down 1.8% to 459 pence. The spread-betting firm told us that pre-tax profit for the six months to Nov. 30 was down 21% to 81.1 million pounds on revenue that fell 14% to 169 million pounds. That might be a disappointing fall, but it's better than it was looking earlier -- we had a 5% fall in early trading, and there's been a bit of a recovery later in the day.

What IG Group needs to attract spread-betters is volatile markets, and the firm told us today that it had experienced "the longest sustained period of low volatility for over five years."

IGas (LSE: IGAS  )
IGas Energy shares have dropped 5.4% on the announcement of a placement of up to 24.3 million new shares. The new placement, at a price of 95 pence, amounts to approximately 15% of the current share capital.

IGas, which develops and produces oil and gas in the U.K. from onshore reserves in the northwest of the country, sees new opportunities in the oil shale business now that the government has lifted restrictions. Despite today's fall, the shares have still just about doubled in price this year.

ARM Holdings, perhaps surprisingly, is the biggest FTSE 100 faller today, down 4.2% to 836 pence. There is no news today, and the fall is probably due to some profit-taking after the shares soared from the start of 2013 -- the price reached a record 875 pence to take it up 11% on the year so far before falling back to today's price.

That's a pretty massive rise for shares that are already highly valued. Although there is certainly a big future market for ARM's designs in mobile computing, the shares are currently on an eye-watering P/E ratio of 60 based on 2012 estimates, and forecasts for 2013 only take it down to 50. The long-term FTSE 100 average is around 14.

Finally, how does Britain's ace investor Neil Woodford avoid share price falls? He goes for a strategy of buying solid blue-chip shares paying dependable long-term dividends. And in doing so, he has built a record of beating the FTSE for nine straight years. If you want to see how Woodford manages to beat the market, this free Motley Fool report takes a look at some of his key holdings. To get your copy, click here while it's still available.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2196880, ~/Articles/ArticleHandler.aspx, 9/28/2016 6:25:49 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,228.30 133.47 0.74%
S&P 500 2,159.93 13.83 0.64%
NASD 5,305.71 48.22 0.92%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
ARM $0.00 Down +0.00 +0.00%
ARM Holdings CAPS Rating: No stars
IGAS $13.66 Down -0.84 -5.76%
IGas Energy CAPS Rating: No stars
IGG $887.30 Up +6.80 +0.77%
IG Group Holdings CAPS Rating: No stars
ARMH $0.00 Down +0.00 +0.00%
ARM Holdings CAPS Rating: ***