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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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IT Staffing Stocks showing first signs of recovery

December 2002

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.

Buried away in the FT support services sector, IT recruitment shareshad previously suffered falls of  80-90% from their peak until arecent mini rally.  With the latest industry surveys still showingno evidence of recovery, most investors are inclined to stayaway.  Yet this is precisely the time that experienced fundmanagers start accumulating shares in the leaders, in the expectationof better times around the corner.  They know that stock isdifficult to get hold of at these depressed prices and appreciate thehigh level of gearing at staffing companies, many of whom haveintroduced massive cost reduction programs, resulting in a reduction ofemployee numbers of between 20% and 40%.  The added "kicker" forthose recru ...

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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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