Secondary Recommendation

Ottakar's - Earnings to grow 72% over 2 years

February 2003

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.

Long-term subscribers will have fond memories of our recommendation to buy book retailer, Ottakars, exactly two years ago. Since our tip at 81p, the shares never looked back, peaking at 197p last November, before settling at the current 178p. But those tempted to take profits should think again. Following a strong tradingstatement for the crucial six weeks to 11 January brokers haveupgraded their forecasts, with pretax profit expected to be Â£5.3m inJanuary 2003, rising to Â£6.8m in 2004. Equivalent earnings,which were 13.1p in 2002, should rise to 17.8p and 22.6p, implyinggrowth of 72% in the two years to 2004. Ottakars tradesfrom 93 stores across the UK, ranging from small shops serving localcomm ...

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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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