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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Caretech

December 2010

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:
  • CTH
  • Price:
  • 370p
In its pre-close update for the year to 30 September Caretech noted that trading is in line with expectations with occupancy across the established homes broadly similar to H1 at 92-93%. Caretech also announced the acquisition of a further three care home businesses for a combined consideration of £16.1m. Following the latest deal net debt stands at £115m. The acquisition, which brought in 138 beds, was valued at an enterprise value to EBITDA of 6.8 times. Taking this deal, its previous acquisition in June, as well as organic growth Caretech has added 379 beds during the year, taking the total to 1,809, a whopping 26% increase over the closing 2009 figure.Latest forecasts from Brewin Dolphin are for pretax profit of £21. ...

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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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