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



Why Babcock International, Interserve, and Blinkx Should Lag the FTSE 100 Today

LONDON -- A fall in the Vodafone share price helped pressure the FTSE 100 (FTSEINDICES: ^FTSE  ) today, taking it down 0.42% to 6,463 points by 9:30 a.m. EDT after rumors were denied that a takeover bid for the telecom giant by Verizon Communications and AT&T was afoot. Weakness in the mining sector also helped depress the index of top U.K. shares.

Here are three other constituents of the various FTSE indexes that are also on the way down today:

Babcock International
Babcock International Group shares have dropped 1.5% to 1,087 pence despite a pre-close trading update telling us that results for the year ended March 31 will be in line with previous expectations. The engineering-support firm told us that business had gone well during the year and that its contract pipeline was looking strong with a stable order book of about 12 billion pounds.

Babcock shares have had a great year, putting on about 30% over the past 12 months. But their P/E ratio has risen to 16, with a dividend yield of only a modest 2.3% expected.

Interserve (LSE: IRV  )
In another case of positive news presaging a share price fall, Interserve lost 3% to 495 pence after announcing a new contract win. Through a joint venture, the construction services firm will help develop Edinburgh's Haymarket area in a project that will see the construction of commercial accommodation, retail units, leisure and hotel facilities, and underground parking.

Interserve will invest 10.5 million pounds and expects to take on construction work worth 150 million pounds as part of the overall 200 million pound development.

Blinkx (LSE: RTHM  )
Shares in Blinkx, a constituent of the Fool's Beginners' Portfolio, have dropped 3.3% to 81 pence, though again the only news of the day looks good. The Internet video technologist revealed a new deal with XOS Digital, which will "give Blinkx users access to a wide array of original and high-quality sports content."

Although the share price responded disappointingly to the news, it is still up nearly 60% since October 2012.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5.7% yield and could be set for some nice share-price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy today.

Read/Post Comments (0) | Recommend This Article (1)

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: 2343741, ~/Articles/ArticleHandler.aspx, 9/25/2016 11:52:58 PM

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 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

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

9/23/2016 12:01 PM
IRV $387.81 Down -4.44 -1.13%
Interserve CAPS Rating: No stars
RTHM $34.75 Down -1.25 -3.47%
RhythmOne CAPS Rating: No stars
^FTSE $6909.43 Down -1.97 -0.03%
FTSE 100 CAPS Rating: No stars