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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Telecom Plus - Launch of YouView could accelerate profits and eps

August 2012

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:
  • TEP
  • Price:
  • 884p
Telecom Plus, a “virtual†utility operator that re-sells gas, electricity and mobile communications services, is one of a handful of shares hitting all-time highs in an otherwise nervous market. This is partly because of its clockwork-like ability to meet or exceed market forecasts and quite remarkably its pretax profit has increased from £4m to £30.7m over the past ten years. The company’s growth rate would have been even better were it not for the fact that its customers tend to have their telephone bundled in with their TV (notably through Sky and Virgin) and are therefore reluctant to switch this service over to Telecom Plus. However, Telecom Plus could soon be in a position to overcome this obstacle given its deci ...

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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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