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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare

November 2011

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
  • Price:
  • 208p
A horrendous update, with UK like-for-like sales falling 9.6% in the 12 weeks to 1 October and although international retail sales rose a healthy 17%, analysts have slashed their forecasts ahead of the all-important winter period. The chief bugbear was a downturn in consumer confidence with customers trading down from bigger ticket items, such as branded push chairs. Chief executive Ben Gordon has walked the plank and chairman and former Whitbread boss, Alan Parker, will conduct a rigorous strategic review. One analyst from broker Oriel has estimated that it would “only” cost £100m to shut the entire UK side, with many property leases shortly expiring, while he estimates the international side alone is wor ...

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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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