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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Telecom Plus - New Year NAP has nearly doubled

July 2008

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:
  • TEP
  • Price:
  • 331p
Shares in utilities reseller Telecom Plus, a New Year Nap for 2008 at just 178p, have established a strong uptrend in recent months, culminating in a spike to a new high of 368p. The catalyst for this month’s surge was an impressive set of final results that  beat forecasts, which had only been raised a few months previously.For the year to 31 March, pretax profit increased 45% to £16.8m on turnover up 6% to £186m. Eps increased 42% to 17.7p. In spite of spending £5.7m on share buy-backs and £6.8m on the dividend, net cash increased by £4.5m to £30.3m.  Telecoms services, which represents a 33% share of total sales but a higher (albeit unquantified) share of profit, saw a slight drop in revenues from £61. ...

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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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