LONDON -- The FTSE 100 (INDEX: ^FTSE ) is perking back up a bit today, gaining 15 points to 5,819 after it was revealed that the U.K. economy is officially out of recession. Apparently, we enjoyed 1% growth in the three months to September, buoyed by the Olympics.
But it's not all roses for some constituents of the FTSE indexes. We take a quick look at three shares that are falling today.
WPP (LSE: WPP.L )
Footsie advertising giant WPP Group fell 3.8% to 785 pence after cutting this year's revenue growth outlook. The lowering of expectations from 3% growth to 2.5% growth follows a previous reduction from 3.5% in August.
Since then, the shares, which had peaked at 884 pence, have slipped back. Forecasts prior to today put them on a forward price-to-earnings ratio of 11 with a 3.3% dividend expected, so they don't look obviously overvalued.
ASOS (LSE: ASC.L )
Online fashion-retailer ASOS fell 7.3% today after releasing results for the five months to Aug. 31, reversing a pre-announcement mini-surge. Although group revenue is up 32% to 238 million pounds and international sales rose by 46%, the City was clearly disappointed by the news that buying director Caren Downie is to leave the company.
Forecasts for next year suggest a tripling of earnings per share but put those shares on a P/E of 48. Is there enough future growth through international expansion to justify such a high rating?
It's a shock when company shares fall like these two have, and one of the best long-term strategies for minimizing the pain is to invest in solid, dividend-paying shares. That's what legendary investor Neil Woodford does, and the free Motley Fool report "8 Shares Held By Britain's Super Investor" takes a look at his strategy. Click here for your copy.
Victoria (LSE: VOG.L )
AIM-listed Victoria Oil & Gas fell on full-year results, dropping 2.8% to 2.4 pence. Although estimates of reserves at Victoria's Logbaba operation in Cameroon were upped by 50% and production there commenced in July, the firm's losses for the year widened from $4.7 million to $7.7 million.
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