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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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

April 2009

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.

  • Epic Code:
  • SCHE
  • Price:
  • 85p
In many ways Southern Cross, the UK's largest provider of residential care homes, is the perfect share to ride out the economic storm. The company provides a service that will never be cut back on, even in tough times but even better is the fact that its market is enjoying significant growth with favourable demographic trends leading to accelerated growth in the number of senior citizens using its services. Southern Cross’ growth is also supported by Government imposed regulatory burdens, forcing many smaller rivals to exit the market as well as deterring any would be entrants. In spite of this attractive backdrop the shares have been hammered down to extremely low levels on concerns that Southern Cross took on more debt than it ...

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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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