At the moment, I’m watching FTSE 100 One of the cheapest market indicators in the world. Historically, in terms of history and geography, Futsy is rarely rated. Therefore, I often route for bargaining among the largest listed companies in the UK. What I’m looking for is outstanding companies whose share price has made a knock. In short, I’m looking for ‘fallen angels’: weak stock prices, but big business with the potential to raise capital (and dividend earnings) in the future.
Riser and fall of FTSE 100
In the last three months, the FTSE 100 has slipped somewhat. Friday, July The index lost only 20 points (-0.3%) from July to this Friday (October-October). Meanwhile, some futsal stocks have crashed in the last quarter.
In the last three months, the FTSE 100 has gained 52 (a double-listed) value of 101 stocks. These gains range from a bumper 71% to a tiny 0.1%. The average gain among all 52 winners was 8.8% (9.1 percentage points ahead of the larger index). At the other end of the scale are 49 shares that have lost value since July 9th. The smallest reduction in these victims was only 0.6%, while the largest was more than a quarter (-27.3%). The average loss across these 49 lagguards is 8.7%. But 16 of these slumpers recorded double-digit declines (10% +), while three lost more than one-fifth (20% +) of their value. Ouch.
A flop stock can be a hidden gem
The three biggest losers in the last three months of the FTSE 100 are:
|Institution||Sector||Loss of 3 months|
|Smith and nephew||Medical equipment||-20.3%|
|Royal Mail||Postal service||-27.3%|
Two of these companies are former state-owned businesses: BT Group And Royal Mail. Both are undergoing variable changes to adapt to this digital age (and both have huge pension deficits). But I was surprised to see Smith and nephew # 99 on my FTSE 100 flop list. For me, S&N is a great British business whose share price has probably dropped a lot.
Why I like S&N
As I write Friday afternoon, Smith and nephew share prices have risen 1,256 p. S&N stocks fell 2.2% in five days, 7.7% in one month and 20.3% in three months. It is down 10.3% in six months and 17.7% in one year. In short, S&N shares are declining for most of 2020-21. One reason is that the company makes medical devices for use in orthopedics; Sports medicine and ENT (ear, nose and throat); And improved wound management. Due to the Kovid-1 pandemic epidemic, routine and elective surgery has been suspended worldwide. Thus, lower hip and knee replacements mean less sales for this .1 11.1bn FTSE 100 firm.
At their 52-week high, S&N shares hit 1,681.5p on January 20, 2021. Nine months later, they climbed just 29p above their 52-week low of 1,227p yesterday (Thursday, October 7). They currently have a price-to-earnings ratio of 27.1 and a yield of 3.7%. S&N also yields a 2.2% annual dividend yield, about two percentage points to the FTSE 100 forecast of 4.21% in 2021.
I don’t own this FTSE 100 stock, but will buy it today as the main candidate for the Covid-1 post-recovery. However, if the coronavirus changes or continues well until 2022-23, it will be bad news for the world এবং and the value of S&N shares!
Cliffordcy has no position in any of the shares mentioned. Motley Flower UK has recommended Smith & Neptune. The opinions expressed in the companies mentioned in this article may differ from those of the authors and therefore the official recommendations we make on our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Flower, we believe that considering a variety of insights makes us a better investor.