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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare

January 2012

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:
  • MTC
  • Price:
  • 163p
Following its poor update nearly two months ago, Mothercare's interims were disappointing with UK like-for-like sales down 7% for the 28 weeks to 8 October, while gross margin shockingly fell 4%, resulting in an operating loss of £18.5m (against a £2.8m profit last time). Although the international side posted sales growth of almost 16% to £338m, the group’s underlying loss was £4.4m. However, a one-off charge relating to goodwill write-downs (from the 2007 acquisition of the Early Learning Centre) and a property restructuring charge, together totalling £78.5m ...

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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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