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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Giardino - Restaurant group's shares poised for breakout

June 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.

Another restaurant group poised for a re-rating is Giardino, owner of a chain of counter service restaurants located mainly in  shopping centres around the UK.  Armed with an experienced board, a top notch track record and an aggressive expansion strategy, Giardinofloated on AIM in the summer of 2000.  But it hit trouble last year in the shape of intense competition from the coffee shops, forcingthe group to put the brakes on its expansion program and focus its attention on squeezing better returns from existing outlets.  Its latest results showed this back-to-basics strategy is starting to bear fruit with like-for-like sales returning to positive territory. With some of the weaker coffee shop competition now exiting ...

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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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