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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare

July 2004

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
Mothercare's recovery program has yielded dramatic improvements in its latest full year results and three directors, including chief executive, Ben Gordon,  have felt confident enough to buy a total of nearly 62,000 shares at prices of between 332p and 339p soon after those results were announced.For the financial year ended 27 March pretax profit soared to £16.5m, excluding a £0.8m VAT credit, compared to a loss of £22.4m last time, while underlying earnings were 24.5p.  Net cash jumped from £7.8m to £40m.   Like-for-like sales rose 5.9% thanks to betterproduct availability (up from 65% to 80%) as well as improvements toproduct design, quality and fashionability.  Gross margin soaredby 6% thanks to a £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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