image

Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

Signet - US superstores driving growth

April 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.

Gerald Ratner's remark that his jewellery  products were "crap"must go down as one of the all-time faux pas,  since it nearly bust the company.  However,  shares in this speciality retailjeweller, now renamed Signet, have recovered Lazarus-like from those horrors.  This is thanks largely to growth in the US, which now accounts for 71% of sales, with  the UK (29%) accounting for the balance.  In the four years between 1997 and 2001 progress has been rapid, with pretax profit  soaring from £45m to £163m and earnings increasing from 2p to 6.6p.  Returns on capital last yearwere a lucrative 23%, showing just what can be achieved so long as key directors don't put their foot in their mouth. ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

Related Articles

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