LONDON -- This morning, Barratt Developments
How come? The company's stock dropped 6% despite its announcement of a 159% jump in pre‑tax profits in its annual results for the year ending June 30, released this morning.
Clearly, 2.3 billion pounds in revenue and a 25% improvement in operating margins to 8.2% seemed like good news to some investors, who piled in when the market appeared underwhelmed by the scale of the recovery at Barratt and the nonresumption of its dividend.
The good news is that the shares are still down 80% from their prerecession levels, so there's plenty of upside left. That said, on a price-to-earnings ratio of 17, that upside doesn't come cheap.
Also finding favor with the private clients of stockbroker TD Direct Investing this morning were shares in another bombed-out casualty of the recession: Royal Bank of Scotland
The impetus? A broker recommendation from Liberum Capital will have helped, but the real news was a successful $2 billion loan note issue, coupled with positive noises from Europe in the shape of German approval for the eurozone's new European Stability Mechanism.
Also popular this morning were shares in Vodafone
The fall might have been greater but for demand from investors hoping for a boost in data traffic volumes from the launch of Apple's iPhone 5 later today. Irrespective of that boost to the bottom line, a yield of 5.5% and a P/E of 11 aren't to be sniffed at.
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 been buying in the recent past -- and why they've been buying them.
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Investing ideas from Malcolm Wheatley:
Malcolm has no disclosable interest in any of the shares listed. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple and Vodafone Group. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. 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.