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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Telecom Plus

July 2010

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:
  • 346p
Shares in utilities reseller, Telecom Plus hit a 16 month high of 352p after better than forecast finals. These showed pretax profit falling 19% to £18.2m.One encouraging sign is that Telecom Plus' key performance indicators are showing good growth, including a 29% rise in distributor numbers, 19% increase in customers and 24% increase in services sold. Growth in customers would have been higher but for the focus on acquiring homeowners, who are proven to take more services, have a lower churn and have lower bad debts. It could be argued that this migration to a higher quality customer base should re-rate the shares, which currently trade on  prospective PE of 13.3, based on KBC Peel Hunt's forecasts for eps of 26.1p ...

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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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