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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare - Lucrative partnership with Boots

March 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:
  • MTC
  • Price:
  • 634p
Mothercare's Q3 update confirmed a continuing improvement in its fortunes. Total group sales rose 4.6%, with UK like-for-like sales up 4.2% in the 13 weeks ending 8 January. Meanwhile, year-to-date group sales rose 6.6%, with UK up 4.1%. Separately, Mothercare has signed a partnership with Boots to design, source and supply its childrenswear and accessories from this September. Analysts expect it to add £5m to group profits in the year to March 2012, a 10% increase on previous expectations. The shares have hung back in a tepid market but with the prospective PE dropping to 16.6 (eps: 38.3p) for the year starting 1 April, they could rally later in the year. Hold. ...

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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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