Why Land Securities Group plc, Smiths Group plc And Telecom Plus PLC Should Lag The FTSE 100 Today

Land Securities Group plc (LON: LAND), Smiths Group plc (LON: SMIN) and Telecom Plus PLC (LON: TEP) all stumble.

| 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.

The FTSE 100 (FTSEINDICES: ^FTSE) opened a few points up today, but by late morning it is down 26 points to 6,530. The big miners were behind the early boost as several positive production reports came in, but minutes from the Bank of England’s recent meeting showing a vote against extending its purchasing of bonds turned sentiment negative.

We have a few notable individual risers and fallers today. Here are three companies from the various indices that are falling behind:

Land Securities

Land Securities Group (LSE: LAND) shares dipped 17p (1.8%) to 953p, despite the real-estate investment trust releasing an upbeat first-quarter update this morning. Although the overall retail market was described as challenging, chief executive Robert Noel told us that “In London, demand is increasing and we remain confident that our portfolio is well positioned and our developments well timed“.

Even with challenging conditions, the firm’s overall retail occupancy rate stands at a pretty impressive 97.2%, but does that justify a forward P/E of 25 based on forecasts to March 2014? Well, that is surely founded on longer-term expectations for the property market, and I can’t see it as unreasonable.

Smiths Group

A pre-close full-year profit warning didn’t do any favours for the Smiths Group (LSE: SMIN) share price, as it lost 36p (2.6%) to 1,355p. Although trading for most of the group is still in line with expectations, the Smiths Detection division has seen three pre-2010 contracts go sour, and the outcome is now said to be “materially adverse to previous expectations“. As a result, operating profit is now likely to be up to £15m below previous expectations.

Those expectations were for a 2% rise in earnings per share, putting the shares on a P/E of around 14.5, but that clearly needs to be revised now.

Telecom Plus

Telecom Plus(LSE: TEP) shares have had a great year, gaining nearly 60%, but a first-quarter update on AGM day today took the shine off a little, knocking 45.6p (3.3%) off the price to 1,344p.

The update actually looked pretty good, with the firm having added 13,372 new customers and 64,267 new services during the quarter, to reach totals of 474,404 and 1,666,327 respectively. Cash flow is also just fine, with net cash of £3.6m on the books as of 30 June.

Chief executive Andrew Lindsay said “Profits for the first half are expected to be modestly ahead of the corresponding figures for last year, and we look forward to reporting record figures for turnover, profits, earnings and dividends for the full year, in line with market expectations“. First-half results should be with us on 19 November.

Finally, reliable dividends can more than compensate for the day-to-day ups and downs of share prices. So how about a company that’s offering a 5% yield and which could be set for some nice share price appreciation too?

It’s the subject of our BRAND-NEW report, “The Motley Fool’s Top Income Share For 2013“, which you can get completely free of charge — but 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.

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

2 mouthwatering FTSE growth stocks I’d buy and hold for 10 years

Growth stocks purchased today could be the gateway to many years of capital growth and returns. Here are two picks…

Read more »

Investing Articles

Can the IAG share price really be as dirt cheap as it looks?

While most shares have recovered since the Covid days, the IAG share price is staying stuck to rock bottom. Surely…

Read more »

Investing Articles

BAE Systems shares are flying! Have I missed the boat?

Sumayya Mansoor looks into whether or not BAE Systems shares are still a good buy for her portfolio after the…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

1 heavyweight FTSE 100 share I’d buy as London retakes its crown

Some Footsie firms are extremely large, but that doesn't mean they couldn't get even bigger. Here's one such FTSE 100…

Read more »

Investing Articles

I’d buy 5,127 National Grid shares to generate £250 of monthly passive income

With a dividend yield of 6.5%, Muhammad Cheema takes a look at how National Grid shares can generate a healthy…

Read more »

Investing Articles

The FTSE 100’s newest member looks like a no-brainer to me!

This Fool explains why she sees the newest member of the FTSE 100 as a great opportunity after its recent…

Read more »

Investing Articles

Empty Stocks and Shares ISA? Here’s how I’d start earning a second income from scratch

Like the thought of earning extra cash tax free? Our writer explains what he'd do to begin earning passive income…

Read more »

Happy young female stock-picker in a cafe
Investing Articles

No savings at 25? I’d start by investing £3k in these 3 red-hot FTSE 100 shares

Harvey Jones thinks these three FTSE 100 stocks would be a great way to kickstart a portfolio of UK shares.…

Read more »