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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare - Green shoots turning into deep roots

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.

  • Epic Code:
  • MTC
On 8 October, shares in Mothercare leapt 54p to 278p after announcing a strong trading update and have now gained 79% since our buy note three months ago. Broker, Cazenove, has massively upgraded itsforecasts, with pretax profit now expected to be £11m (upgraded from £4m) for the year ending March 2004, rising to £15m (upgraded from £9.3m) in 2005. New earnings are forecast  to be 16.4p and 22.3p. Wealways thought the strength of Mothercare's brand would eventually winthrough, although the speed of chief executive, Ben Gordon's turnaround has been impressive.  The shares are poised to go higher ...

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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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