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Which are the most 'reduced'? FTSE 100 actions so far this year?
The most obvious way to answer the question is to look at performance so far this year. In what is turning out to be a pretty good year (the index is already up 8% with three more months to go), you might think there wouldn't be too many companies trading at discounted prices. In fact, as I write, a total of 34 companies are cheaper than New Year's Day, several of them double-digit percentages in the red. Here is the 'top' 10.
top 10
My first thoughts upon seeing that list are, it must be said, a great sense of relief. I do not own any of these stocks and have not suffered the impact on my brokerage account.
That doesn't mean he's a market wizard. A lot of this comes down to timing and luck. He PA and Central Stock prices have seen significant cuts as oil prices fell for much of the year and recently fell below $70 a barrel. Therefore, a list like this of underperforming stocks doesn't tell us much about the respective companies.
What it can do more good is be part of the initial research when looking for stocks to buy.
A name that might intrigue me is Barratt Developments. Homebuilders are in a much better situation than they were a couple of years ago. And with interest rates on the way down, a 14% discount sounds attractive (and perhaps surprising).
But perhaps it's less surprising given that changes are happening at the company. However, I do not fully agree with the company's proposed merger with its competitor. Redrow. The deal has not yet been finalized. And even if you do, Barratt is paying a pretty penny to complete the move. I'll avoid it for now.
Another action on the list that stands out is entertain (LSE: ENT), the proprietary gaming group partypoker, Coral and Ladbrokes.
Fact investigation
The stock was already trending lower even before 2024 and has fallen about 64% from the all-time high. The current market capitalization of £5 billion (around $6.7 billion) is also some fall from an $11 billion takeover offer the company received in 2021. Further highlighting the potential opportunity Here's the fact that gaming, unlike many of the FTSE 100 sectors is known to be a growth market.
Of course, the game comes with its own baggage. People can and do ruin their lives. It cannot be ignored that an investment here is an ethical gray area.
The other side of the argument is that a flutter over the weekend at a couple of football games is harmless. But it is certainly a reason to get discouraged. Not only for the ethical side, but also for the possible regulation that could arise in the future. Still, for those looking for cheap stocks, this is an option to keep an eye on. I'll add it to my watchlist.