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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Homeserve - US deal

October 2006

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:
  • HSV
  • Price:
  • 1644p
Shares in Homeserve stormed to a new high of 1761p after investors reacted favourably to its recent marketing agreement with Ohio-based FirstEnergy Corporation, which heralded a step-change in the development of its emerging US division. Under the five-year agreement, FirstEnergy will market Homeserve’s home emergency policies to 3.4m electricity households in its Ohio and Pennsylvania service areas. As part of the transaction, Homeserve has acquired 20,000 existing electrical wiring, gas supply pipe, water line and sewer line policies from FirstEnergy. Originally tipped at 800p in March 2005, we recently recommended taking part profits. Continue to hold the remainder. ...

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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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