LONDON -- This morning, pharmaceutical giant GlaxoSmithKline (ISE: GSK.L) was the fourth-most popular purchase by stockbroker TD Direct Investing's individual clients between the market's opening and noon.
Why? A 2% drop in the share price gives a clue: Institutional investors have been selling, it turns out. Consequently, private buyers have been stepping in this morning to grab a piece of this high-yielding drugs-to-toothpaste global business that handily pays its dividends quarterly, and which is presently offering a prospective yield of 5.2% on a forecast P/E of 12.
And the reason for the institutional sell-off? A downgrade by Morgan Stanley, it seems, which expressed a preference for AstraZeneca, citing concerns over margins.
The fifth- and sixth-most popular picks this morning by the private clients of the stockbroker are two companies bracketed together in a merger play -- respectively, Xstrata (ISE: XTA.L) and Glencore (ISE: GLEN.L) .
The reason? There's been overnight news regarding the proposed terms of the deal, which has been stalled by sovereign wealth fund Qatar Holding, 12% owner of Xstrata. A Glencore shareholders' meeting to discuss the deal has been canceled, and the offered price for each Xstrata share has been raised from 2.8 Glencore shares to 3.05 shares.
Sensing a bargain, private investors have piled in. Will they be disappointed? Time will tell.
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Investing ideas from Malcolm Wheatley:
The article 3 Hot Stocks You Bought Today originally appeared on Fool.com.
Malcolm owns shares in GlaxoSmithKline and AstraZeneca but has no disclosable interest in any other of the shares mentioned. 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.Disclaimer: The TD Direct Investing (www.tddirectinvesting.co.uk) list of Top Ten Buys should not be taken as a recommendation to buy or sell any particular bond or stock, and is not intended as any form of advice. Instead, it is simply an indication of the general buying trends among TD Direct Investing customers during the period stated.
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