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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Cape - Gain approaching 150%

November 2009

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:
  • 270p
Shares in Cape stormed to a new high of 275p after the company issued very positive results, which in turn triggered upgrades to forecasts. For the six months to 30 June turnover rose 12% to £332m while pretax profit increased 85% to £27.2m. Adjusted eps was up 38% to 18.1p, while operating margins improved sharply from 10.1% to 10.5% thanks to cost cutting, increased amounts of bundled work and recovery in certain regions. Cape, which provides services such as scaffolding, insulation and fire protection mainly to the oil & gas and mining sectors, has proven more resilient than some expected after investors previously worried that its high gearing would sink it. But these worries have been put to bed with net debt falling fr ...

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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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