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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Filtronic - Prospective PE of 5.3 for next year

February 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.

Filtronic, the world's largest independent producer of radio frequency (RF) systems used in base stations, made a big splash in the tech boom when its shares, which could have been bought for £2 in late 1996, spiked to over £22 in early 2000.   The excitement thencentred around the massive volumes of business it was doing for Nokia (still its largest customer) as part of the latter's rollout of base stations, which transmit and receive the signals used in mobile phone networks. While the shares have fallen as part of the generalsector de-rating, two company specific issues have aggravated their decline.  First, its net debt had risen to £125.9m (gearing: 97%) in 2001 due to acquisitions, before falling to £84 ...

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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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