Secondary Recommendation

Office2office - Low prospective PE of 5.4

September 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.

In spite of the fact that Office2office, a leading contract supplier of office consumables and related services in the UK, has established a remarkably strong record of profit growth, its shares have until recently been under the cosh. The reason for this lies in its decision to gear up its balance sheet by making a substantial acquisition early last year at a time when most firms were battening down the hatches. However, with its latest update in June noting that trading remains in line with expectations, the shares have rallied on the basis that Office2office is forecast to make eps of 25.6p this year, which drops the prospective PE to a lowly 5.4. A new era for Office2office began in December 2000 following a management buy-out ...

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Office2office - Take profits and sell (May 2006)

Office2office - Follow directors and take part profit (November 2005)

Office2office (May 2005)

Office2Office (October 2004)

Office2office - Interesting play on outsourcing of office consumables (August 2004)

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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