Secondary Recommendation

Mouchel Parkman - Engineering consultant benefiting from outsourcing

January 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.

Homebuy, which rents out and sells TVs to less well-off customers, may remind experienced investors of Thorn Electrical’s dowdy radio rentals business from days of yore. However, its performance since it floated on AIM in August last year at 80p, has been a tale of extraordinary growth right from the word go. In its first full year, pretax profit increased 250% from £0.8m to £2.8m and after recent interims smashed broker expectations, this year’s forecast has been lifted to an incredible £12.4m! Homebuy’s core business is based on an army of 200 door-to-door salesmen pounding the streets to persuade hard-up consumers (classified as "sub-prime") to sign up to a brand new TV, on the basi ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Homebuy - Sales of TVs to sub-prime customers seeing huge growth

New Year NAPS for 2006 - Six ideas for the New Year

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