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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Carphone Warehouse

December 2006

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:
  • CPW
  • Price:
  • 292p
Shares in Carphone Warehouse have suddenly become extremely volatile, trading as high as 360p before tumbling to a low of 280p. Initially investors applauded its £370m acquisition of Time Warner AOL’s internet access business, which at a stroke brought in another 1.5m broadband customers and 0.6m dial-up customers. The acquired business also generated an operating profit of £14.1m on turnover of £442m, although Carphone believes it will contribute between £30m-£40m profit next year, once synergies and cost savings have been achieved. However, this deal was immediately overshadowed by an announcement from a key customer, Vodafone, that it is taking its UK mobile subscriptions business away from C ...

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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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