The Motley Fool

Why Gulf Keystone Petroleum Limited, Genus plc And Johnson Service Group plc Should Lag The FTSE 100 Today

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.

The FTSE 100 (FTSEINDICES: ^FTSE) doesn’t seem to know here it’s headed today, having bobbed up and down all morning.

By early afternoon, it’s 8 points down at 6,498, with Vodafone‘s fall holding the index back — there’s been some profit-taking, and some had been hoping for a bigger special dividend. The banks and miners are still reacting in mixed fashion on strengthening news from China.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

But which shares are beating the FTSE during its fall today? Here are three names that are dropping and look set to lag the market today:

Gulf Keystone Petroleum

Shares in Gulf Keystone Petroleum (LSE: GKP) slipped 0.8p (0.5%) to 173.5p today, although the only news was the appointment of a slew of new non-executive directors.

The new board members consist of Andrew Henry Simon O.B.E., Jeremy Benjamin Gerald Asher, Thomas Counter Shull, John Bell and Philip Anthony Dimmock. The firm is also seeking one further independent non-executive director. In addition, the current chairman of the Nominations Committee and also an existing non-executive director, Lord Guthrie, has been appointed deputy chairman.

The appointments should help bring to an end the bitter boardroom battles that have been plaguing Gulf Keystone in recent months after M&G Recovery fund, a major shareholder, criticised directors’ pay. Today’s appointments come after the Gulf Keystone board gave in to M&G’s demands.


Figures from Genus (LSE: GNS), the animal genetics specialist, were poorly received this morning, and the firm’s shares fell 133p (9%) to 1,346p as a result.

With revenues flat, adjusted pre-tax profit gained 2% to £47.2m, but statutory pre-tax profit slumped by 30% to £38.1m after Genus was forced to write down the value of some of its biological assets — its herd of sperm-producing bulls, apparently. Adjusted earnings per share (EPS) rose by 3%, and the interim dividend was lifted 10% to 16.1p per share.

Genus shares are up only a few percent over the past twelve months, but they’re still quite highly valued based on the potential for its in-demand products. With a 12% rise in EPS forecast for the year to June 2014, which follows five years of rising earnings, the shares are on a forward P/E of 24.

Johnson Service Group

It was a first-half report that did the damage at Johnson Service Group (LSE: JSG), too, with the share price falling 1.2p (2.4%) to 48.8p — but that’s no great tragedy for shareholders, as the price is still up nearly 75% over the past year.

The textile rental and dry-cleaning firm saw a 1% fall in revenue, but adjusted pre-tax profit soared by 53% to £5.5m  over the period, with adjusted EPS up 25% to 1.5p. The interim dividend was raised by 11% to 0.4p per share.

Johnson has also been engaged in the facilities management (FM) industry, but has offloaded that division with executive chairman John Talbot saying: “The disposal of the FM activities represents a major step in the Board’s strategy to refocus the Group on our original core business of Textile Services and to reduce net debt“.

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

All you need to do is get a copy of our BRAND-NEW report, “The Motley Fool’s Top Income Share For 2013” — it’s completely free of charge, but it will only be available for a limited period. Click here to enjoy your copy today.

> Alan does not own any shares mentioned in this article.

Is this little-known company the next ‘Monster’ IPO?

Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead.

Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025.

The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential.

But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving.

Click here to see how you can get a copy of this report for yourself today

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.