This morning, investors sensed bargains at Burberry (LSE: BRBY), Barclays (LSE: BARC) and Vedanta (LSE: VED).
This morning, iconic fashion retailer Burberry (LSE: BRBY) was the single-most popular purchase by stockbroker TD Direct Investing's individual clients between the market's opening and 12 noon.
How come? A 20% drop in the share price, following a warning that current-year profits may come in around the lower end of City forecasts. You can read all the details here, but the bottom line is clear: Burberry has announced a sale -- and this time it's the company's shares, not its clothing, that have had the price slashed.
Falling knife -- or bargain? Many investors will have looked at the company's healthy cash position and strong brand, and seen a situation analogous to the similar announcement by Tesco (LSE: TSCO) in January: a strong business, temporarily battling headwinds. For investors who find a price-to-earnings (P/E) ratio of over 20 too rich, and a yield of just 1.7% too low, today obviously marked a buying opportunity.
Barclays (LSE: BARC) was the seventh-most popular share bought this morning by the private clients of stockbroker TD Direct Investing. Again, the logic isn't difficult to see: at 208p, and yielding 3.4% on a P/E of just 7, Barclays is cheap. Throw in reassuring noises from new chief executive Antony Jenkins, and the pick makes itself. Barclays, he says, won't be broken up -- but will stop activities that have been hurtful to it in the past.
Third-up is mining giant Vedanta Resources (LSE: VED), which was ninth-most popular share bought this morning by the private clients of stockbroker TD Direct Investing. The reason? Overnight news that the Indian state of Goa has suspended all mining activities, following allegations of illegal and ecologically damaging mining. Vedanta's shares, already weakened by the commodities downturn, fell 3% to 977p, putting them on a P/E of 13 and a yield of 2.8%
Finally, what are super-investors Neil Woodford and Warren Buffett buying today? We can't tell you that, but we can tell you the names of the shares that they've been buying in the recent past -- and why they've been buying them.
So download this free report to discover the shares that interest Woodford right now, and this free report to learn the name of the British share that Buffett has been buying recently. There's no obligation, and they can be in your inbox in seconds.
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Investing ideas from Malcolm Wheatley:
> Malcolm has no disclosable interest in any of the shares listed. The Motley Fool owns shares in Tesco.
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 amongst TD Direct Investing customers during the period stated.
