Secondary Recommendation

Velosi - New oil support services firm

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.

One of the consequences of oil producers being awash with so much cash is that this new found wealth has trickled down into the oil support services arena, a logical progression given that oil firms must invest in new equipment and infrastructure to continue exploiting these golden times. One new AIM constituent that is benefiting from this phenomenon is Velosi, which provides quality assurance and quality control services to a number of leading national and multi-national firms. Velosi was introduced to AIM on 21 August at a price of 90p a share by broker Charles Stanley in a placing that raised £8.9m net new money, which is being used to repay debt, finance future expansion and provide working capital. The shares have inched ahe ...

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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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