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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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New Economy Stocks fighting back

July 2002

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.

For many so-called new economy stocks, which are not expected tomake a profit for several years, they say that it’s better to travelhopefully than to arrive.  Early hype and optimism drives up theshares only for hopes to be dashed when their idea turns out to be adud.  However, some companies now appear to be going against thisstereotype.  Shares in Last Minute, Ebookers and Egg, which make theirmoney predominantly from  their presence on the internet, have allperformed well over the last four months. Investors have reactedpositively both to the prospect of their breaking into profit and tothe fact that the businesses have high operational gearing.  Thesestocks typically have a relatively fixed cost base ...

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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.

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

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