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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Hercules Property

November 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.

Following last month’s article on Hercules, the property supportservices group, we met up with managing director, Robert Plumb. Our interest in the shares lies firmly in the expectation thatHercules’ property insurance division will make  a speedy recovery.  Even after a recent setback, this division stillcontributed two thirds of the group’s £12.4m pre-exceptional profitthis year  and is the key to  what we believe will be astrong recovery in the shares over the next 18 months.  That setback in property insurance came from Deacon, its largestsubsidiary last year, where profit fell from £6m to £2.5m.  Deaconarranges insurance for blocks of flats and ran into trouble when itssole ins ...

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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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