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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Primary Recommendation

McCarthy & Stone - Retirement house builder targets 50% increase in home sales by 2019

January 2016

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:
  • MCS
  • Price:
  • 236p
As Michael Caine would say, not a lot of people know that new issue, McCarthy & Stone, will qualify to join the FTSE-250 on 21 December. The company has virtually cornered the market for building retirement homes; from its first development in 1977 it now commands an amazing 70% market share, while it has punchy plans to increase output from 1,923 to 3,000 units by 2019. A secondary target to hike average selling prices by 25% should lift its return on capital employed (ROCE) from 20% to over 25%.These projections are not fanciful as aside from the well trodden themes of low interest rates and rising real incomes, the outlook for retirement home builders is even rosier than for their mainstream house building rivals. According ...

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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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