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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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TMI Trader Portfolio - December '08

December 2008

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.

After October's tumultuous events the markets have calmed down with the FTSE-100 rising just over 2% and the All-Share index remaining unchanged, while the TMI Trader Portfolio slightly underperformed, with a fall of 3.9%. One of the big problems right now is that excessive declines in share prices are making investors feel that bad news is imminent, even when none is forthcoming. At the same time, even small down grades to earnings forecasts are causing almost unheard of levels of volatility. Such a backdrop explains the unfortunate fall in Charter, whose recent update triggered a downgrade in eps forecasts from 79p to 67p and leaves the shares at potentially bargain levels on a prospective PE of 3.9. Elsewhere, Chemring fell thr ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X