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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dunlem - Gross margins still ahead of last year

February 2009

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:
  • DNLM
  • Price:
  • 150p
With the shares in out-of-town specialist homewares retailer Dunelm standing at such a lowly rating, its trading update triggered a rally. Although like-for-like sales fell 5.6% in the 26 weeks to 27 December, Dunelm's policy of avoiding unplanned price cuts, alongside a tight control of costs meant gross margin was 1% higher than the previous year. During the period the company also opened three new superstores, taking the total number to 79. Meanwhile it remains on track to reach its medium-term target of 150 superstores, with a further seven units legally committed to open, while the low level of demand for sites in general means further opportunities should come up soon. The balance sheet is also in good shape with the ...

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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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