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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Cordiant - Break-up could see uplift in value

March 2003

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 severe downturn in the advertising industry has, not surprisingly, battered Cordiant Communications, the world's eighth largest advertising and marketing group.  Having seen its share price fall from a high of 406p to  its 23p low newly appointed chief executive, David Hearn, wants to end the pain by orchestrating a sale of its non-core assets to pay down its demanding £249m gross debt and realise any remaining shareholder value.   Cordiant's market capitalisation is now just £118m, which compares favourably to the £533m sales and £37m operating profit  that Bates Worldwide, its  core business, is expected to make in 2002.  Outgoing finance director, Art D'Angelo, sees value at these levels, hav ...

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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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