Updates

Carphone Warehouse - Acquisition triggers 40% eps upgrade

July 2013

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.

The shares soared after Carphone announced it has bought the 50% stake in Carphone Warehouse Europe (CPW Europe) that it doesn't already own from US giant, Best Buy for Â£471m. Carphone has announced the placing of 47.2m new shares (10% of the equity) to part fund the deal. The deal equates to an exit PE of just 8 while it compares favourably to the Â£1.1bn that Best Buy originally paid to acquire it back in 2008. Separately Carphone has announced strong Q4 trading to end March with like-for-like revenues up 6.5% reflecting a continued strong UK performance and Q4 connections rose almost 10%. In Virgin Mobile France Q4 revenues fell almost 10% while Carphone has also sold a freehold property in London for Â£40.5m. In reacti ...

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Carphone Warehouse - De-merger still on track (February 2010)

Carphone Warehouse - De-merger plans should stimulate re-rating (January 2010)

Carphone Warehouse (March 2008)

Carphone Warehouse - Best Buy acquires stake (November 2007)

Carphone Warehouse - shares hit new highs in falling market (September 2007)

Caphone Warehouse - Finally solving TalkTalk problems; eps to soar to 25.5p in â€˜09 (July 2007)

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Carphone Warehouse - 'Triple play' opens up huge opportunity in BT's back yard (January 2006)

Carphone Warehouse - Cautious outlook (May 2005)

Carphone Warehouse - Dispels high street gloom (March 2005)

Carphone Warehouse - Beats forecasts again (November 2004)

Carphone Warehouse - Over 500,000 TalkTalk customers (September 2004)

Carphone Warehouse - 385,000 TalkTalk customers (July 2004)

Carphone Warehouse - 30% increase in connections (May 2004)

Carphone Warehouse - New residential fixed line business going great guns (December 2003)

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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