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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Blacks Leisure - Ungeared outdoor sportswear retailer

April 2003

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

While most sports retailers are finding current trading difficult, Blacks Leisure, the UK's largest outdoor clothing retailer,  looksset to outperform its peers this year.  This is largely down to its decision   last May to sell its sport and fashion division to rival, John David Sports, 140p,  for £53m.  Not only did this ungear Blacks' balance sheet (net cash now: £3.5m) but italso took the group out of a market which had become intensely competitive,  with a number of supermarkets and other non-specialist stores entering the market because of the attractive gross margins on offer. Blacks is now purely focused on the outdoor sports clothing and boardwear markets, two nicheswhich  ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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