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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Telecom Plus - Signs of recovering markets

February 2017

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:
  • TEP
  • Price:
  • 1236p
Three events have suddenly added cheer to Telecom Plus, which supplies residential customers with cheap telephony, broadband, gas and electricity deals. First is its disposal of a 20% holding in business energy supplier, Opus Energy, netting it £71m cash – nice work given it’s in the books at just £7.4m and management will return the cash to shareholders via a tender offer.Secondly, interim results noted an 11% rise in pretax profit to £25.1m, while full year pretax will be towards the higher end of its forecast range of £55m-£59m. Gross margin improved 1.6% to 21.1% due to a smaller contribution from lower margin energy. Revenues fell 1% year-on-year due to unseasonally warm weather causin ...

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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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