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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Telecom Plus

January 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.

Shares in Telecom Plus, a virtual reseller of telephony and otherutility services, have recently broken into a higher trading range,following better than expected interim results, announced on 10December, while the subsequent purchase of 25,000 shares  by adirector at 150p  adds extra spice.Unlike its rivals, who  are saddled with servicing the debtstaken on to  set up vast telecom networks, Telecom Plus (net cash:£6.7m) does not own a network but instead simply buys unwanted capacityfrom  other providers. Its lower cost base means it can undercutits rivals and still make a mint.  Although one of the obviousbarriers to growth is breaking through customer antipathy of switchingto a new service provide ...

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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