3 Shares Set to Beat the FTSE Today
LONDON -- It shouldn't take much to beat the FTSE 100 (INDEX: ^FTSE) today, after the index dived 90 points in morning trade to 5,563 points on fresh eurozone fears.
The Spanish banking crisis has once again regained center stage after struggling regional governments began to seek cash from the country's national government. The developments pushed the country's 10-year bond yields to 7.55% today and raised the specter of a major national bailout.
But some companies in the various FTSE indexes did well today. We look at three bucking the wider downward trend.
It was a good day for electronics companies, as XP Power (ISE: XPP.L) gained 7% to reach 1,102 pence after releasing interim figures.
The firm, which makes power control components for the electronics industry, told us that turnover for the six months to June was down by 10% to 47 million pounds and that pretax profits had fallen by 20% to 10 million pounds. However, XPP added that second-half sales and profits were expected to be substantially higher.
An improved first-half dividend of 21 pence per share, up from 19 pence per share, is to be paid, with full-year forecasts currently supporting a yield of 5%.
Also in the electronics business, Dialight (ISE: DIA.L) saw its shares rise 5% to 1,052 pence after releasing its interim results.
This time, the maker of industrial LED lights recorded an 18% rise in turnover to 61 million pounds and saw diluted earnings per share grow by 51% to 16.5 pence. The interim dividend was boosted by 21% to 4 pence per share.
These shares have 10-bagged since their 2009 low, and their 1.2% forecast dividend yield is a lot lower than that of XP Power. But Dialight expects two years of strong earnings growth.
Oil and gas explorer Edge Resources (ISE: EDG.L) put on a very nice 21% this morning to reach 18.2 pence following conformation that its summer Canadian drilling season had started earlier than expected.
After getting its hands on a nearby rig that was not being used, Edge says it will now be able to get two wells drilled and start production testing earlier than planned.
Earnings forecasts for the next two years, ending March 2013 and 2014, respectively, are strong.
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The article 3 Shares Set to Beat the FTSE Today originally appeared on Fool.com.Alan Oscroft does not own any shares mentioned in this article. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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