image

Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

SIGN UP NOW
Secondary Recommendation

Caretech - Exciting recovery share on forward PE of just 4.9

June 2012

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:
  • CTH
  • Price:
  • 140p
Shares in Caretech, which provides residential and non-residential care to people with learning disabilities and mental health disorders, have been the proverbial roller-coaster in their time on AIM. After floating at 160p in October 2005 the company captured the imagination with a plan to roll out new care homes as rapidly as possible in order to increase its 2% share of the huge £6.7bn market. However, after peaking at 640p in mid '07 the shares collapsed to a low of 75p on fears that its main local authority customers would react to the new age of austerity by slashing their fee rates and at its low point the shares were trading on a forward PE of less than 3. But as often is the case investors’ worst fears proved well wide of the ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

Caretech (December 2010)
Caretech (August 2010)
Caretech - Improved borrowing facility to herald more acquisitions (May 2010)
Caretech - Acquisitions responsible for dramatic eps growth (January 2010)

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

LIMTED TIME OFFER

SUBSCRIBE TODAY AND SAVE £30 USING OFFER CODE 30OFFTMI

To access our archive of articles and receive current issues you need to subscribe

SUBSCRIBE NOW