3 FTSE Shares Crashing To New Lows

Published in Investing on 20 December 2012

Vodafone (LSE: VOD), Severfield-Rowen (LSE: SFR) and Daisy (LSE: DAY) plumb the depths.

The FTSE 100 (UKX) is staying just shy of its 52-week high of 5,989 points, and at the time of writing is up just one point on the day to 5,963. Still, the index has come a long way since dipping to a low of 5,230 points at the start of June -- up 14%, in fact. Thankfully, it looks like the summer pessimists might have been wrong.

But if the various FTSE indices are way up from their low points, unfortunately the same cannot be said about some of their constituents. Here are three hitting rock bottom this week:

Vodafone

Ah, Vodafone (LSE: VOD), why are you so unpopular? Shares in the telecoms giant have hit a new 52-week low of 155.5p this week, having slid steadily since late summer -- they're now down around 20% from a year high of 192p.

But Vodafone is still forecast to offer a full-year dividend yield of nearly 7%, which is one of the best in the FTSE 100, and has been busy on a sizable share buyback programme in an attempt to improve shareholder value.

Severfield-Rowen

Severfield-Rowen (LSE: SFR) shares continue to languish, having dipped as low as 83p today, just a smidgen above their 52-week low. The fall was spurred by profit warnings telling us that the speciality steel business is experiencing tough market conditions.

But although a big fall in earnings is expected this year, City analysts are predicting a strong recovery next year that should bring the price-to-earnings (P/E) ratio down to under 10. And if the firm can manage to make this year's dividend forecast (which is unlikely to be covered by earnings), we're on for a 4% yield, too.

Daisy

AIM-listed telecoms provider Daisy Group (LSE: DAY) closed on a 52-week low of 85p yesterday, but has bounced back a little to 94p today. Daisy is one of Neil Woodford's investments, as his Invesco funds hold a 26% stake in the firm.

Daisy's earnings per share have been growing steadily, and there's a small boost forecast for this year. But despite that, the shares currently trade on a forward P/E of just 6, which is less than half the long-term FTSE average.

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 Oscroft does not own any shares mentioned in this article.

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Comments

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apprenticeDRL 20 Dec 2012 , 4:43pm

Just bought Vodaphone today at this price. I have been intending to buy for a while now but finally took the plunge. I think at this price the yield is 6.12 from my calculations. Thats based on my purchase price of 155.64 and the 2012 dividend of 9.52 pence per share. I am very happy if my calculations are wrong and it is nearer to 7%.

I bought this for my HYP portfolio so the dividends were the overriding reason, I bought today as the price is now below the 1 month Bollinger Trend lines. I think it will continue trading between 150 and 180 so dont see much growth in this share.

IDPickering 20 Dec 2012 , 5:04pm

"Vodaphone " ...Who? :-)

apprenticeDRL 20 Dec 2012 , 6:18pm

Sorry Vodafone - can I excuss that as a Typo? :)

stable52 20 Dec 2012 , 7:27pm

I bought VOD earlier this week at 158p and was surprised to see it fall further. Anyone know why it's so weak right now?

theRealGrinch 20 Dec 2012 , 9:11pm

purchased 3 weeks ago on a &% yield. Havent looked at price since. No point.

MAACPRIME 21 Dec 2012 , 10:21am

The market's spooked about how much they'll have to pay for a 4G license.

SevenPillars 21 Dec 2012 , 10:30am

Nomura seems to be questioning the Vodafone dividend now.

Reported yesterday;

"Paying an inflated ordinary dividend has been discredited as a way to reward shareholders, it restricts strategic flexibility and it leaves Vodafone dependent on Verizon Wireless cash flows which compromises its ability to negotiate with Verizon. A review of cash return policy is overdue, we believe."

Midas007 21 Dec 2012 , 2:45pm

Sorry but this article beggars belief and shows the lunacy of the completely blind and repetitive devotion to Neil Woodford. In the same article...

"Daisy Group (LSE: DAY) closed on a 52-week low of 85p yesterday....Daisy is one of Neil Woodford's investments, as his Invesco funds hold a 26% stake in the firm..."

Then at the end...

"...Finally, how does Britain’s ace investor Neil Woodford avoid share price falls?"

Apart from the obvious contradiction, can I suggest that Mr Woodford's principle objective is not to "avoid share price falls?" And even if it is, shares that he holds fall all the time! Please Motley Fool, think about what you write as this kind of journalism does you no credit.

goodlifer 21 Dec 2012 , 9:37pm

Dear old Woody can't be very bright if he's happy to pay TMF for making such a lousy job of selling him and his products.

And if they don't get paid for it, why do they do it?

In either case, why can't they do it better?

ScottishPound 22 Dec 2012 , 2:00pm

I wonder if Woody knows about it?

jaizan 23 Dec 2012 , 2:05am

I'm not smart enough to identify what he sees in Daisy Group.
What I see is debt, growth by acquisition and losses.

ANuvver 23 Dec 2012 , 4:43am

Midas007:

Good luck to you. Last time I pointed something like that out, the post got yanked without explanation.

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