3 Hot Stocks You Bought Today

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.

Are you looking to profit as a long-term investor? "10 Steps To Making A Million In The Market" is the latest Motley Fool guide to help Britain invest. Better. We urge you to read the report today -- while it's still free and available.

Investing ideas from Malcolm Wheatley:

Malcolm has no disclosable interest in any of the shares listed. The Motley Fool owns shares in Tesco. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Disclaimer: The TD Direct Investing (www.tddirectinvesting.co.uk) list of Top Ten Buys should not be taken as a recommendation to buy or sell any particular bond or stock, and is not intended as any form of advice. Instead, it is simply an indication of the general buying trends among TD Direct Investing customers during the period stated.


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

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: 2013161, ~/Articles/ArticleHandler.aspx, 7/24/2014 5:17:26 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