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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Bodycote - Heat treatment group geared to economic recovery

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.

Following our buy recommendation two months ago when the price was just  97p we recently spoke with Bodycote's chief executive, John Hubbard and finance director, David Landless – another team feeling confident about prospects now that the hard graft of a major cost-cutting program is behind them. In spite of the recent rise, we believe that an investment is still warranted as institutional investors will continue to increase holdings in this highly economically geared FTSE-250 stock, ahead of a pickup in its largest markets of civil aerospace and automotive. As we said lasttime, shares in Bodycote, one of the largest international providersof specialist heat treatment services, were an investor's dream in thelast decade ...

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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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