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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Cape - Shares bounce by 130p

March 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:
  • CIU
  • Price:
  • 440p
Shares in Cape have launched a terrific recovery, climbing from 310p to the current 440p since our last update two months ago. The catalyst was a reassuring update for the year to 31 December, noting trading is now anticipated to be in line with the revised expectations. In Q4, Cape managed to sustain the 15% revenue growth achieved the previous quarter and three of its four regions enjoyed growth, while recent contract awards will further achieve 2012 targets.Numis' latest forecasts are for pretax profit of £67m in 2011 and £72.6m for this year, for eps of 41.3p and 45p. The broker notes they reflect minimal Pacific Rim LNG awards and sees upgrade potential, while its price target is 596p. ...

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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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