Why Ladbrokes, Tullow Oil, and Premier Oil Should Lag the FTSE 100 Today
LONDON -- The FTSE 100 has opened the week poorly, falling 0.61% to 6,490 points by 7:50 a.m. EDT after the latest figures from China saw first-quarter economic growth come in lower than expected. Amid a sell-off of commodities, the gold price fell 5% to its lowest level for two years -- it's now down 25% since its peak of September 2011.
But even with the index falling, there are companies doing worse. Here are three whose share prices are tumbling today.
Ladbrokes' shares have dropped 8.2% to 190 pence after the bookmaker issued a first-quarter profit warning. Full-year operating profit is now expected to come in at the bottom end of expectations after Q1 was hit by "a significant reduction in profit" from horse racing at Cheltenham and weakness in online gambling. Operating profit for the quarter dropped 13 million pounds to 37.4 million pounds.
Ladbrokes shares are now down more than 20% from a mid-March peak of 245 pence, with the previous six months' bull run now almost completely reversed.
Shares in Tullow Oil have fallen 4.3% to 1,110 pence after the explorer delayed its Sabisa-1 well in Ethiopia, citing "hole instability issues" that require the drilling of a secondary "sidetrack" bore. Exploratory results are now due in late May. But on the upside, initial drilling did reveal hydrocarbon indications.
In other positive news, we were told that the first of the firm's six well tests at Ngamia-1 in Kenya has demonstrated flows of 281 barrels of oil per day. Further tests should soon reveal the area's full production potential.
Premier Oil have also slipped 4.3% today, despite the firm announcing the first oil flows from its Huntingdon field in the North Sea, which commenced last Friday. Chief executive Simon Lockett said: "This marks the first of four U.K. North Sea projects from our development portfolio which will come on-stream over the next few years."
After ramping up from an initial 30,000 bopd, the field is expected to produce 250,000 bopd to 300,000 bopd when in full flow.
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The article Why Ladbrokes, Tullow Oil, and Premier Oil Should Lag the FTSE 100 Today originally appeared on Fool.com.Alan Oscroft has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.