Primary Recommendation

Caretech - Acquisitions responsible for dramatic eps growth

January 2010

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.

Caretech provides residential and non-residential care to people with learning disabilities and mental health disorders. In the past five years, pretax profit has increased from Â£0.5m to Â£15.3m with brokers being forced to upgrade their forecasts on numerous occasions. Co-founder and executive chairman Farouq Sheikh, whom we met with over the month, has found a sweet spot in the healthcare market. But what really makes Caretech stand out from the crowd is that its residents are likely to spend the rest of their life in these homes, which means that the typical stay is anything from 10 to 30 years. Taking the mid-point as an average and factoring in current fee rates, Sheikh estimates that Caretech has an order book of Â£1.8bn, w ...

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

Subscribe now

Already a subscriber? Login

Ultra Electronics - Defence electronics firm boasts fabulous 13 year record

Caretech - Exciting recovery share on forward PE of just 4.9 (June 2012)

Caretech (December 2010)

Caretech (August 2010)

Caretech - Improved borrowing facility to herald more acquisitions (May 2010)

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