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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

Mothercare

August 2011

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:
  • MTC
  • Price:
  • 408p
Shares in Mothercare have been disappointing but have found support at around £4. The problem was final results, which showed underlying pretax profit down 23% to £28.5m on group sales that rose 3.6% to £793.6m. Net cash was £15.3m while encouragingly banking facilities have increased from £40m to £80m (extended to May 2014) on cheaper terms.The main problem was the UK where a 4% reduction in like-for-like sales resulted in operating profit reducing more than two-thirds from £36.1m to £11.1m. This reflects a terrible winter season, as tight consumer spending allied to awful weather and increasing competition from online rivals meant significant rise in clearance sales was needed to shift stock which impacted margins. < ...

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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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