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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dunelm - Take a part profit after share spike

January 2020

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:
  • DNLM
  • Price:
  • 1137p
Dunelm surprised investors with an unscheduled update, noting it has successfully transitioned all customers to a new digital platform. Customers have responded well to its new website and it did not see any adverse impact to its performance, maintaining strong sales growth - both online and in stores.Gross margin has been stronger than expected as a result of sourcing gains and better sell through. Broker Stifel expects gross margins to improve 64 basis points in the period helped by lower mark-down. Operational costs remain well controlled and in line with expectations.In light of the above it now anticipates that full year profit before tax will be higher than previous expectations.Broker Stifel has upgraded pretax p ...

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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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