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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dunelm - CEO purchases c.£250K shares

September 2018

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:
  • DNLM
  • Price:
  • 525p
Given the long heat wave, investors were probably expecting a severe profit warning but Dunelm was far more resilient with fourth quarter sales for the period to 30 June showing like-for-like sales broadly flat  - and that against tough comparatives last time. The result reflects continuing market share gains – apparently it’s trouncing John Lewis – and online growth of 41.8%, offsetting store like-for-like sales declines of 4.6%. Nevertheless, full year sales of £1,050m (+9.9%) were marginally below expectations (Stifel forecast: £1,052m), the shortfall coming from the Worldstores business.Dunelm also expects pretax profit to be £102m (FY’17: £109m) including trading losses from ...

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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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