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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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AGA Foodservice - Cooker group on acquisition spree

August 2003

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.

Aga Foodservice, the  instantly recognisable cooker equipment supplier to the commercial and retail markets, is another group enjoying the seemingly endless consumer boom in the UK.  Up until early 2001, Aga was formerly part of Glynwed, a traditional metal-basher from the Midlands, whose best days in the 1960s and 1970s had become a distant memory.  Fortunately for Aga's long sufferingshareholders its management had the presence of mind to focus on its growing retail operations, with the final disposal being a pipe systemsoperation, which was sold to Belgian group, Etex, for £786m in January 2001.  After paying off all debts and handing £333m back to shareholders, that left Aga with around £100m net cash and a new ...

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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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