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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Investors find safe haven in food producers

June 2002

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.

One of the first reactions of investors to the trauma ofcollapsing  dot com and technology shares was to switch to theslower but safer earnings potential of food producers.  But youmight be surprised over the magnitude of the latter’s outperformance.Since its nadir of 11 February 2000 the FTSE food producers index hassoared by a massive 70%.One impressive performer has been Geest, 802p(market cap: £600m) which has risen 57% since  January 2001. Many investors still perceive Geest to be a low margin distributor ofbananas.  But  Geest exited this operation in 1995,reinventing itself as a focused producer and distributor of freshlyprepared foods. This is a fast ...

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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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