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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Devro - Sausage skin maker sees better trading

October 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.

Over the month we caught up again with the management of  Devro, a manufacturer of edible sausage casings. Devro has taken several years to recuperate from a rough passage in its history,  caused by a variety of reasons; the foot-and-mouth, the  BSE food scares and a bum acquisition of Teepak.  But all the signs now indicate that this is behind it.  After the disposal of loss-making cellulose business Teepak, in October 2001, management has been able to cash in on markets that have returned to their long-term growth trend.  In the light of an excellent set of interim results, analysts have upgraded earnings to grow by 35% in the  two years to 31 December 2004, a fact not reflected in its lowly p ...

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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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