3 FTSE Shares Crashing To New Lows

Published in Investing on 5 December 2012

Falkland Oil & Gas (LSE: FOGL) and Severfield-Rowen (LSE: SFR) plumb new share price depths.

The FTSE 100 (UKX) seems to be moving once again away from its 52-week low point of 5,230 points and, although it is pretty flat today at around 5,877, it's heading ever-closer to its 52-week high of 5,989.

Sadly, even if the index is well away from its low point, there are individual shares hitting the depths every day. Here are three trading close to their 12-month lows:

Falkland Oil & Gas

The Falkland Oil & Gas (LSE: FOGL) story has been one of horror of late, with the shares having hit a 52-week low of 29.4p today. The big hit happened at the end of November when the firm reported poor drilling results at its Scotia well near the Falkland Islands, and told us the well would be abandoned -- after having hoped for as much as one billion barrels of oil from it.

But the firm has plenty of cash, and there are hydrocarbons in the region. If exploitable deposits of them are found, could it turn out that now was a good time to buy the shares?

Severfield-Rowen

Shares in Severfield-Rowen (LSE: SFR) have been sliding all year, and today fell to just a quarter of a penny above their 52-week low, at 84.25p. The structural steel producer has been having a hard time of business, with weakening demand and increasing competition putting big pressure on margins and profits, and we have already had profit warnings from the firm.

But so far, forecasts for a 3.7% dividend yield for this year have not been cut, even though it is unlikely that a payout of that amount will be covered by earnings. It seems the City is pinning its hopes on a forecast recovery next year, which could see profits more than double -- if all the bad news is already out.

Stobart

Stobart Group (LSE: STOB) has been suffering from the recession, with the shares plummeting to a recent low of 94.5p -- they're up 3p from that to 97.5p today. The firm warned in August that trading in its transport division, which accounted for 80% of group profits last year, was down at the halfway stage. And the price dropped further when the results were out in October.

Then confidence was further dented after the haulage firm was forced to abort a planned bond issue after initial feedback was not favourable. But there's a dividend yield of 5.9% forecast for the next two years, so could the shares be oversold now?

Finally, how does Britain’s ace investor Neil Woodford avoid share price falls? He goes for a strategy of buying solid blue-chip shares paying dependable long-term dividends. And in doing so, he's built a record of beating the FTSE for nine straight years.

If you want to see how Mr Woodford manages to beat the market, the free Motley Fool report "8 Shares Held By Britain's Super Investor" takes a look at some of his key holdings. To get your copy, click here while it’s still available.

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

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