3 FTSE Shares Being Crushed Today
LONDON -- The London market opened weaker this morning, with the benchmark FTSE 100 (INDEX: ^FTSE) index dropping 11 points to 5,472. Unfortunately, European bailout worries, China's slowing growth, and a protracted U.S. recovery continue to weigh on many shares. Year to date, the blue-chip index has lost almost 2%.
Around the market, some companies are suffering their own particular issues. Here are three names from various FTSE indexes that have slumped today.
British Sky Broadcasting (ISE: BSY.L)
British Sky Broadcasting dived 7% to 649 pence as details emerged of the latest Premier League television deal. The satellite broadcaster is set to spend 2.3 billion pounds to cover 116 games during each of the 2013-2014, 2014-2015, and 2015-2016 seasons -- a deal that values each match at 6.6 million pounds, up 40% on the current deal.
Sky's investors were also unnerved by BT (NYS: BT) successfully bidding 738 million pounds for a total of 38 games, as well as the telecom group's launch of a new sports channel.
Computacenter (ISE: CCC.L)
Elsewhere, Computacenter slid 15% to 305 pence after warning shareholders that new business wins of late had come with some significant extra costs. The IT services specialist admitted that an additional 7 million pound charge, which would cover the recruitment of 700 new staff, would hurt profits during 2012.
Prior to today, the City was expecting Computacenter to deliver profits this year of 83 million pounds. A 470 million pound market cap may now be of interest to higher-risk income seekers, as the trailing 15 pence-per-share dividend offers a 5% yield.
Mulberry (ISE: MUL.L)
Meanwhile, Mulberry collapsed 441 pence (22%) to 1,572 pence following the fashion firm's annual results. Although sales jumped 38% to 169 million pounds and profits surged 54% to 36 million pounds, investors were concerned with an outlook statement that cited caution due to the adverse economic climate.
Given that full-year earnings came in at 44 pence per share, today's price fall may not be that great a surprise to the company's shareholders. The valuation had looked priced to perfection, and even after this morning's drop, Mulberry's 937 million pound market cap is still equivalent to 36 times profits.
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At the time this article was published Maynard owns no shares of the companies mentioned. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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