3 FTSE Shares Crashing To New Lows: Anglo American plc, Cairn Energy PLC And Imagination Technologies Group plc

Anglo American plc (LON: AAL), Cairn Energy PLC (LON: CNE) and Imagination Technologies Group plc (LON: IMG) are falling.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Europe and China are two of the biggest bugbears for the FTSE 100 (FTSEINDICES: ^FTSE) these days, and bad news from both sent the index of top UK shares down 102 points to 6,202 this morning. Weaker-than-expected Chinese data sent the miners down again, and a growing anti-austerity crisis in Portugal is creating fresh panic across Euroland.

Still, at least the FTSE is nowhere near its 52-week low of 5,478 points yet. But some companies are hitting rock-bottom. Here are three dropping to fresh lows:

Anglo American

Though the latest Chinese weakness has hit the FTSE’s big miners again, at least some of them had been rebounding a little before the latest blow fell. Sadly that’s not the case for Anglo American (LSE: AAL), whose shares dropped to a new 52-week low of 1,216p this morning, before clawing back a little to reach 1,225p.

The shares are now down more than 40% over the year, as Anglo American suffers from its exposure to the iron ore market. But with the shares on a forward price-to-earnings (P/E) ratio of under 20 based on full-year forecasts, and with a likely dividend of over 4%, they look over-sold to me — as do pretty much all of our miners.

Cairn Energy

Oil & gas companies are being hit, too, with some of the smaller ones suffering badly. One of them, Cairn Energy (LSE: CNE), was pushed to a new low of 250.7p this morning, and is trading for just a penny more than that as I write — but to put that into perspective, Cairn has dropped by only around 8% since a year ago.

Cairn is forecast to make losses for the next couple of years, although at interim time in May chief executive Simon Thomson did describe the company as having “a balanced portfolio of potentially high growth assets“.

Imagination Technologies

Shares in Imagination Technologies (LSE: IMG) ended on a new closing low of 282.8p yesterday, and are down a bit on that to 279p by late morning today. That comes despite the multimedia chip technologist revealing a 19% rise in overall revenue in June’s full-year update — and that included a 49% rise in royalty revenues.

There’s a rise in earnings per share of more than 30% forecast for the year to April 2014, with a further 21% indicated for the year after. The shares are on a forward P/E of 22, which might seem high, but compared to a multiple of 39 for rival ARM Holdings it looks positively modest.

Finally, what’s the best way to deal with share price falls? One way is to focus on dividends, which can be spent or reinvested according to your needs — whether investing for income or growth, good old cash is always welcome.

And that’s why I recommend the BRAND-NEW Fool report, “The Motley Fool’s Top Income Share For 2013“, in which our top analysts identify a share that they believe will provide handsome dividend income for years to come.

It will only be available for a limited period, so click here to get your copy today.

> Alan does not own any shares mentioned in this article. The Motley Fool owns shares in Imagination Technologies.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

Could the JD Sports Fashion share price double in the next five years?

The JD Sports Fashion share price has nearly halved in the past five years. Our writer thinks a proven business…

Read more »

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »