Secondary Recommendation

Greggs - Wonderful "bottom drawer" share

April 2005

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.

Value-for-money sandwich retailer, Greggs, is a stock that's tailor made to be kept in the proverbial bottom drawer. Founded on Tyneside in the 1930s by John Gregg, the company had already expanded out of its North East heartland to become a 264 strong chain when it floated in 1984 at 100p a share. The growth that followed was incredible by any stretch of imagination and its estate now comprises 1,263 shops, expansion which has culminated in a forty six-fold increase in the share price. In spite of this success Greggs is hungry for more, with its latest objective being to double its annual turnover to £1 billion by 2010, given its belief that the UK has room for over 2,000 shops. The secret of Greggs' success ...

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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.

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