3 Shares Set To Beat The FTSE Today

Published in Investing on 20 September 2012

Petards (LSE: PEG) up on bid news, and Imperial Tobacco (LSE: IMT) is on course.

The FTSE 100 (UKX) is down a bit today, 35 points to 5,853, as so little is actually happening that short-termers are reduced to worrying about Chinese demand again. But quietness and lack of excitement are exactly what Foolish investors want, as we go about our long-term business of enjoying profits from quality companies.

And even if the FTSE isn't doing much, there are always some individual companies rising. Here are three whose shares are set to beat the FTSE today...


Petards Group (LSE: PEG) revealed today that it has "received a preliminary approach which may or may not lead to an offer being made" for the company that specialises in security and surveillance. The shares responded by climbing 4.5p (16.4%) to 32p. The approach came from Water Hall Group, but no details of any offer price have yet been revealed. An announcement either way must now be made by 18 October.

Before this news, Petards AIM-listed shares had done pretty well, and they're now up around 50% over the past 12 months.

Imperial Tobacco

Shares in Imperial Tobacco (LSE: IMT) rose 24p (1%) to 2,360p on the release of the firm's latest trading update, continuing the current reversal of their recent fall. There's nothing earth-shattering to report, just that trading for the year to 30 September is in line with current expectations, with net revenues "expected to be up by around four per cent with particularly good performances in our Eastern Europe, Africa & Middle East and Asia-Pacific regions".

That suggests a 4.5% dividend yield from shares on a price-to-earnings (P/E) ratio of under 12, with current City forecasts predicting 5% for next year on a P/E falling to 11.


Engineer Ricardo (LSE: RCDO) put on 11p (3.1%) to 369p on the release of preliminary results. While revenue for the year to 30 June only rose by half a percent, to £197.4m, pre-tax profit was up 14% to £17.6m, with basic earnings up by the same percentage to 29.3p per share. The dividend has been hiked by 8% to 12.4p per share for a 3.5% yield on yesterday's close.

The shares have had a rocky ride this year, having dropped to 305p in June, but forecasts for next year are strong and, with net cash of £7.9m on the books, Ricardo is looking pretty healthy to me.

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> Alan does not own any shares mentioned in this article.

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