Secondary Recommendation

Straight - Exciting recent AIM issue

March 2005

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.

Straight, which provides bins for the collection, transportation and storage of household waste, has enjoyed a stunning debut following its introduction to AIM in November 2003 at 80p. Investors have clearly been salivating at the pent up demand in its markets, which is being driven by a raft of new EU Directives and UK Government legislation. The reason for the latest surge in the shares has been the acquisition of its nearest rival, which has immediately doubled the size of its business, making it the undisputed leader. Following this deal, analysts now believe that its sales will increase fivefold to £26m and pretax profit more than sevenfold to £2.2m in the three years ending December 2005. From a ...

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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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