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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Majestic Wine - Opens 16 new stores

August 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.

Although shares in wine warehouse retailer, Majestic, have gone sideways for two years its final results showed some progress. Although headline sales for the year to 1 April 2013 fell 2% to £274m that reflected a deliberate move to reduce its exposure to the wholesale market and stripping this out underlying turnover rose 2.6% to £269m. Pretax profit increased by £0.5m to £23.7m, while eps rose 2% to 26.6p. A strong cash performance saw net funds increase from £1.1m to £2.9m.Although disposable income remains tight Majestic's decision to reduce the minimum order from 12 to 6 bottles was a shrewd move with total customers making purchases in the last 12 months increasing 56,000 to 624,000 while ...

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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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