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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Tarsus - Exhibitions group sells loss-maker; eyes growth in China

April 2004

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.

Given that exhibition companies typically enjoy their vintage years during an economic upswing it's hardly surprising to find shares in this sector regularly hitting new highs.  One such example is Tarsus.   Like all the best exhibition organisers Tarsus has strong business dynamics: it generates a tidal wave of cash as clients typically pay well in advance to secure their stand, while future profits are very predictable, as the level of  rebookings is high.  Although Tarsus has had to grapple with a troublesome loss-making magazine business which was not core to the business, this has just been sold, allowing it to focus on an aggressive program of new launches, that looks set to drive earnings well above ...

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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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