Updates

Southern Cross - Blackstone exit triggers re-rating

April 2007

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.

Two items of positive newsflow sent shares in care home operator Southern Cross rocketing to a new high of 424p, over £1 more than last November’s main write-up price of 303p. The first item was the acquisition of another 23 care homes from Life Style Care, adding another 1,737 beds, expanding the portfolio to 31,107 spread across 611 homes. When combined with previous in-fill acquisitions, this takes the total new beds added this year to 2,932, far in excess of management’s annual target of 1,200! Broker UBS believes this latest acquisition, which came at a nominal cost, enhances earnings by 5% this year and 8% in 2008, with the new earnings forecasts being 17.3p and 20.9p respectively. The broker has ...

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Hargreaves Services - Earnings enhancing acquisition

WSP

Southern Cross - Fee rises support margins (October 2009)

Southern Cross - Portfolio constituent hits six-month high (June 2009)

Southern Cross - With debt concerns almost eliminated the shares look cheap on PE of 4.3 (April 2009)

Southern Cross - Dramatic recovery in finances means care homes operator looks over-sold (March 2009)

Southern Cross (October 2008)

Southern Cross - Shock profit warning (August 2008)

Southern Cross - 5.8% increase in fees (July 2008)

Southern Cross (April 2008)

Southern Cross - Underlying occupancy over 92% (November 2007)

Southern Cross - Divests freehold for Â£30m (October 2007)

Southern Cross (July 2007)

Southern Cross (June 2007)

Southern Cross (May 2007)

Southern Cross (February 2007)

Southern Cross - Largest provider of care homes exhibits strong demand profile (November 2006)

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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