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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Telecom Plus - Conditions still tough

September 2016

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:
  • TEP
  • Price:
  • 1046p
Market conditions have been tough going for utilities re-seller Telecom Plus and this has been borne out by full year results showing revenues, pretax profit and eps rising modestly by 2%, 4% and 7% respectively to £745m, £54.4m and 56.7p. The bugbear has been that falling energy prices have encouraged competition to use the higher margins earned on legacy customers to cross-subsidise the costs of attracting new customers with super low initial deals. This isn’t sustainable in the long term as rivals (particularly new entrants) are losing money, although disappointingly the Competition & Markets Authority refused to address this issue in its latest review.Telecom Plus have refused to play this game directly in ...

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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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