Profit warnings: Time to buy or sell?

PROFIT WARNINGS

A score of FTSE 100 companies have suffered unexpected profit warnings this year amid the deepening economic gloom.

Portfolio stalwarts such as Tesco have not escaped unscathed, with companies seeing shares plunge by double-digit percentages in a single day as nervous investors reacted aggressively to any bad news. Further warnings Profit warnings have always led to sharp sell-offs for stocks, but in recent years this impact has been exacerbated by dwindling confidence, with investors already nervous against a backdrop of slowing growth and the ongoing eurozone debt crisis. A profit warning from Man Group sparked a 25% share price dive last September, and shares have fallen much further since. Fr...