3 Shares the FTSE 100 Should Beat Today

LONDON -- The FTSE 100 appears to have put the woes of Cyprus behind it today. Market sentiment does seem to be exceptionally short-term these days. The U.K.'s top index has recovered 0.53% to 6,423 by 10:20 a.m. EDT, though it has been held back a little by falling bank shares.

But other shares are falling further. Here are three that look unlikely to match the FTSE today.

Homeserve
Homeserve shares have dropped 6.6% to 208 pence after the firm, which provides home emergency insurance and repairs, warned of a fall in U.K. business and announced the loss of 300 U.K. jobs. The firm now expects business for 2014 and 2015 in the U.K. to suffer as it awaits the outcome of an FSA investigation into allegations of misselling.


It's not the kind of thing that inspires customer confidence, and that is reflected in forecasts of an 18% fall in earnings for the year to March 2013. Expectations of a further 14% fall for 2014 may well be revised further downwards now.

Mulberry
Shares in fashion retailer Mulberry Group have dropped 16.8% to 1,027 pence in reaction to a profit warning this morning. Trading since the Christmas shopping period has turned out weaker than expected, and the purveyor of up-market handbags now expects profit to be lower than market expectations.

With wholesale sales down 15%, the firm says full-year revenue will be around 165 million pounds. Pre-tax profit of approximately 26 million pounds is expected, which is down about a third on last year and lower than the 31 million pound consensus estimate.

Stanley Gibbons
Stanley Gibbons Group shares have fallen 2.2% to 274 pence, knocking some of the shine off recent rises -- but they're still up about 35% over the past 12 months. The driver today was the release of full-year results for December 2012, which looked good.

Sales were flat at 35.6 million pounds, but the firm has moved toward higher-margin business, so adjusted pre-tax profit rose 11% to 6 million pounds, with adjusted earnings per share up 10% to 21.44 pence. Internet sales appear to be booming, with a rise of 55% on the previous year -- and the 2011 figure was itself 27% up on the previous year.

Reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that's offering a 5.7% yield and could be set for some nice share-price appreciation, too? It's the subject of our brand-new report "The Motley Fool's Top Income Share For 2013," which you can get completely free of charge -- but it will only be available for a limited period, so click here to get your copy today.

The article 3 Shares the FTSE 100 Should Beat Today originally appeared on Fool.com.

Alan Oscroft has no position in any stocks mentioned. The Motley Fool recommends Homeserve. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Add a Comment

*0 / 3000 Character Maximum