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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Office Photocopier distributors hitting highs

August 2002

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.

Going almost unnoticed amongst the general stockmarket malaise,shares in two distributors of office photocopier and other imagingequipment have been hitting highs. Danka has gained 115% and Eurocopy71% since May last year.  Although both  have experiencedcontrasting histories as quoted companies, they have each grappledsuccessfully with the structural changes of office equipment evolvingfrom analogue to digital.  But if their bullish broker forecastsare anything to go by, both have so far got through this with flyingcolours. In the old days a photocopier distributor would sell copiers,often at a discounted price, to build up an installed base of machinesgenerating higher margin sales from  contracted maint ...

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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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