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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Big Food Group - Iceland chain recovering

November 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.

Shares in Big Food, owner of the frozen food chain, Iceland, and thecash & carry group, Booker, have doubled since our first recommendation in January at 57p.  At that time, what worried someanalysts was the fact that the group was financing an ambitious revamp of its Iceland stores through a sale and leaseback of its freeholds. But that has paid off and the new look stores got off to a flying start, while the core Iceland estate has just announced the first improvement in underlying sales for over two years.  Although one swallow may not make a summer the shares have nevertheless been hittingnew 52 week highs, while the prospective PE of 9.3 looks cheap comparedto forecast earnings growth of 54% over the next three yea ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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