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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Barratt - Fast growing house builder

July 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.

Since mid-March, the FTSE construction and building materials index has enjoyed a remarkable 32% surge as the housebuilding boom, fuelled by record low interest rates, continues at a breathtaking pace.  Sitting right at the heart of this expansion is Barratt, (market cap: £1.02bn), a housebuilder with almost 400 developments nation-wide. Foundedin 1958 in Newcastle upon Tyne by Sir Lawrie Barratt, the companyhas  earned a reputation for steamrollering the competition asits record of 20% a year compound earnings growth since 1992illustrates.  Anyone with the foresight to buy its shares that year would now be sitting on an eleven-bagger,  whichdisproves the old adage that housebuilders are dull inves ...

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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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