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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Two property plays outperforming their sector

October 2002

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.

Towards the tail end of the dot com boom shares in most propertycompanies were looking decidedly unloved, with some sitting on yawningdiscounts of up to 40% of the value of their net assets. Following pressure from a number of aggressive value funds many weretaken private by management, merged or taken over by their largerbrethren.  However, those that chose to remain quoted wererewarded with excellent gains since then, with the FTSE Real Estateindex rising from 1,577 to peak at 2,497 in May this year beforepulling back to the current 1,905.    As the graph belowshows, timing one’s trading to sell the peaks and buy the troughsrequires considerable dexterity and no little luck.  But a handfulof stocks have ...

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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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