The Motley Fool

Why GlaxoSmithKline plc, Severn Trent Plc And Enterprise Inns 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) perked up a bit on opening this morning, but quickly fell back to hover around yesterday’s close. By late morning it’s eight points up at 6,483. But that’s 70 points up on the week, and if the trend continues through tomorrow we’ll see the FTSE break out of its four-week losing streak.

Some of our biggest companies aren’t helping, mind, with their share prices falling. Here are three from the various indices dropping today:

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

GlaxoSmithKline

News of a disappointing clinical drug trial result sent GlaxoSmithKline (LSE: GSK) (NYSE: GSK.US) shares down 28.5p (1.7%) to 1,638p this morning. An independent trial of the company’s MAGE-A3 cancer immunotherapeutic treatment “did not meet its first co-primary endpoint as it did not significantly extend disease-free survival“.

Further trials will now he carried out to determine if the drug has benefits for any subset of MAGE-A3 positive patients, with results expected in 2015.

Severn Trent

Water and sewage firm Severn Trent (LSE: SVT) said today that it will not seek an Ofwat review of its 2010-2015 price limits in relation to costs associated with the adoption of private drains and sewers in October 2011. The costs incurred were not included in the set limits, and will now be absorbed by Severn Trent and not passed on to customers.

The shares responded with a fairly modest fall, of 12p (0.7%) to 1,686p, leaving the price pretty much unchanged over the past 12 months. But even with no price appreciation, shareholders are benefiting from dividends yielding around 4.5%.

Enterprise Inns

Shares in Enterprise Inns (LSE: ETI) dropped 3.5p (2.4%) to 142p after the tenanted pub operator told us of a plan to take on more debt. The firm intends to issue approximately £100 million of unsecured guaranteed convertible bonds in order to provide “low cost, unsecured long-term funding” and reduce the firm’s overall cost of borrowing.

Although the shares are down today, they’re still up around 150% over the past 12 months, with a recovery in earnings not expected before 2014.

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” — 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. The Motley Fool has recommended shares in GlaxoSmithKline.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

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.