3 FTSE Shares Crashing to New Lows

LONDON -- The FTSE 100 (FTSEINDICES: ^FTSE  ) is on a bit of a slide, having dropped 1.3% to 6,336 points today to continue a recent downtrend. However, it's still a long way from its 52-week low of 5,260 points set a year ago. In fact, it's up 22% since then, so we really shouldn't worry too much about the gloomy headlines.

But things aren't so good for some of our companies, with a few falling to new lows. Here are three from the indexes that are struggling.

Anglo American (LSE: AAL  )
Anglo American shares are still sliding, as the firm's exposure to the struggling iron-ore market is hurting it more than some of its sector compatriots. Since the start of June, the slump has been accelerating, and the shares hit a 52-week low of 1,430 pence this morning -- they climbed back a bit to close at 1,440 pence.

What I can't help wondering about Anglo American is whether the shares are now oversold. Sure, there's a fall in earnings per share of 7% forecast for the year to December 2013, but that puts the shares on a forward P/E of only 10.5, and there's a 3.7% dividend yield forecast that should be well-covered. Forecasts for 2014 drop the P/E to just nine.

Greggs (LSE: GRG  )
High-street baker Greggs has had a hard time over the past year, with the shares now down about 20%. The price hit a 52-week low of 396 pence in May before recovering to nearly 420 pence, but it's on the way down again -- it hasn't gone quite as low as it did last month, but at 398 pence it's pretty close again.

Forecasts for Greggs suggest a fairly large fall of 12% in EPS, putting the shares on a P/E of 11.5 -- lower than the FTSE average, but not outrageously so. But there's a dividend yield of 4.8% being forecast, which is a pretty good return. There's no guarantee it will be paid, of course, but the payout was lifted by 1% for 2012, and forecasts indicate a cover of about 1.8 times for this year.

Rockhopper (LSE: RKH  )
Shares in some of our oil and gas explorers are struggling, too, especially those involved in the Falklands area, like Rockhopper Exploration. Rockhopper has seen its shares plunge by more than 50% over the past 12 months, with the price touching on a low of 129.5 pence yesterday and closing just half a penny above that today.

At interim results time in December, chairman Pierre Jungels opined that the company is set "to continue along the value creation path that I've set out in previous statements and begin to address the under performance of the current share price" -- and an AGM resolution passed on Tuesday enables the board to repurchase the firm's shares, should favorable circumstances arise.

What's the best way to deal with share price falls? One way is to focus on dividends, which can be spent or reinvested, according to your needs. Whether you're investing for income or growth, good old cash is always welcome. And that's why I recommend the brand-new Fool report "The Motley Fool's Top Income Share For 2013," in which our top analysts identify a share that they believe will provide handsome dividend income for years to come. It will only be available for a limited period, so click here to get your copy today.


Read/Post Comments (0) | Recommend This Article (8)

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.

DocumentId: 2476194, ~/Articles/ArticleHandler.aspx, 7/30/2014 3:55:46 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...


Advertisement