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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dunelm - Trading ahead of expectations

May 2013

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:
  • DNLM
  • Price:
  • 859p
Dunelm's update for the 13 weeks to 30 March was ahead of expectations with revenues rising 15.4% to almost £178m. Like-for-like sales, which included the benefits of a later end to the winter sale and an earlier Easter than the prior period, grew 5.2%. Despite price promotions to accelerate clearance of discontinued merchandise gross margin improved 20 basis points. Net cash at the period end was £32.7m.The shares have added £1 since our update two issues ago, leaving gains (including the 32.5p special dividend) since our original buy tip standing at 400%. Take a part profit if you've not yet done so.  ...

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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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