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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Carphone Warehouse - Acquisitions push shares to new high

February 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:
  • 263p
he shares hit a new high of 291p following news of two value enhancing acquisitions of fixed line telecom providers. In order to bulk up its fast growing TalkTalk network, Carphone has bought Tele2’s fixed line business for £8.5m, which added 224,000 new customers but of far more significance was the £95m cash acquisition of Onetel from Centrica. OneTel adds 1.1m fixed line customers as well as 60,000 broadband and 50,000 business customers and this deal will put TalkTalk into a much stronger position to challenge BT’s dominance. The deal should be earnings enhancing, mainly because the enlarged business will make significant savings in marketing and analysts expect it to make a profit of £20m over its ...

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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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