Secondary Recommendation

Wellstream - Oil services firm operating in fast growing niche

February 2008

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.

Wellstream (FT sector: Oil & Gas), a leading manufacturer offlexible pipelines to the offshore industry, is one of the clearwinners from surging commodity prices and has benefited from the oilproducersâ€™ need to widen their search into far trickier, deep waterlocations given that the "easy wins" have mostly been discovered.Wellstream, which was subject to a management buyout from oil servicesfirm Halliburton, in 2003, came to the market in April last year at atime when investor excitement in oil firms had become fever pitched. Itwas therefore no surprise that after being introduced to the Full Listat 320p the shares soared after strong trading forced the company toraise its guidance on forecasts on several occasions.Wellstrea ...

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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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