LONDON -- This morning, iconic fashion retailer Burberry
How come? A 20% drop in the share price following a warning that current-year profits may come in around the lower end of City forecasts. You can read all the details here, but the bottom line is clear: Burberry has announced a sale -- and this time it's the company's shares, not its clothing, that have had the price slashed.
Falling knife -- or bargain? Many investors will have looked at the company's healthy cash position and strong brand and seen a situation analogous to the similar announcement by Tesco in January: a strong business temporarily battling headwinds. For investors who find a price-to-earnings ratio of more than 20 too rich and a yield of just 1.7% too low, today obviously marked a buying opportunity.
Up next is mining giant Vedanta Resources
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Investing ideas from Malcolm Wheatley: