Away from the banks and the builders and the other usual suspects, media group Thomson Reuters stands out today.
Its shares have fallen nearly 4% to £14.60 after a savage sell note on the company from analysts at Collins Stewart.
The broker said: "Since its disastrous first day of post-merger trading when it fell 9%, Thomson Reuters has performed relatively well, outperforming the FT All Share by 1.2%. Why is this? We don't believe the company is less cyclical then the market, nor particularly cheap. But what may explain its resilience is a $500m buyback programme. But this is now 80% complete. There remains a risk that once it is finished, Thomson Reuters' shares will fall to reflect its inherent cyclical risk."
Collins Stewart reckons that since the merger of Thomson and Reuters, the buyback has accounted for nearly 15% of the daily volume in its shares. At that rate the broker estimates the programme will be complete in 12 trading days.
"Given that there is a willing buyer in the market, Thomson Reuters itself, we recommend catching 'em well you can, they'll be gone in 12 trading days. Don't wait to see if the buyback is holding the shares up; sell now."
It seems investors are following this advice.
