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LONDON -- This morning, iconic fashion retailer Burberry (LSE: BRBY.L ) was the single-most popular purchase by stockbroker TD Direct Investing's individual clients between the market's opening and noon.
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.
Barclays (LSE: BARC.L ) was the seventh-most popular share bought this morning by the private clients of stockbroker TD Direct Investing. Again, the logic isn't difficult to see: Priced at 208 pence and yielding 3.4% on a P/E of just seven, Barclays is cheap. Throw in reassuring noises from new chief executive Antony Jenkins, and the pick makes itself. Barclays, he says, won't be broken up -- but it will stop activities that have been hurtful to it in the past.
Up next is mining giant Vedanta Resources (LSE: VED.L ) , whose shares were the ninth-most popular purchase this morning by the private clients of stockbroker TD Direct Investing. The reason is overnight news that the Indian state of Goa has suspended all mining activities following allegations of illegal and ecologically damaging mining. Vedanta's shares, already weakened by the commodities downturn, fell 3% to 977 pence, putting them on a P/E of 13 and a yield of 2.8%.
Finally, what are super-investors Neil Woodford and Warren Buffett buying today? We can't tell you that, but we can tell you the names of the shares they've bought in the recent past -- and why they've been buying them. So download this free report to discover the shares that interest Woodford right now, and this free report to learn the name of the British share that Buffett has been buying recently. There's no obligation, and they can be in your inbox in seconds.
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Investing ideas from Malcolm Wheatley: