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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Mothercare

May 2013

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.

  • Epic Code:
  • MTC
  • Price:
  • 299p
Shares in Mothercare bounced after its Q4 update unveiled trading ahead of expectations. In the UK, like-for-like sales were flat with 56 loss-making stores being closed, which is ahead of plan, leaving 255 stores trading. International sales rose 15.5% despite Eurozone difficulties, with 115 stores opened increasing space by 13.5%. Meanwhile online sales (direct in home) rose 18.2%, a massive acceleration on the 1% improvement in Q3. Reflecting a build-up in stock to improve availability net debt is expected to be around £35m at the year-end. Latest forecasts from Numis are eps of 18.7p for the year to end March 2014 rising to 39.1p in 2015. Hold ahead of results on 23 May.< ...

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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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