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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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SCS Upholstery - Prospective PE only 7.7, but growth story still intact

May 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.

The end of the Iraq war could signal a clean bill of health for retail stocks, even those, which sell big ticket items.  For a long time now, we've been fans of SCS, which sells leather and upholstered furniture and is one of the few stocks still able to boast an unbroken record of profit growth – 11 years to be precise.   Forthose TMI readers who don't already hold the shares, there are severalcompelling reasons to invest in SCS.  The most obvious being thatit is opening new stores at a rapid rate, while growing from arelatively low base. Last year, SCS opened 14 outlets, taking its total to 51 and expanding total trading space by a massive 39%. This new space explains why its earnings are forecast to rise 43 ...

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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