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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Lookers - Acquisition hungry car retailer

June 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.

This year the automotive distributor sector has sprung noisily to life, posting a 25.5% gain, while the All Share fell 0.6%.  The excitement was caused by sensational results across the industry as cardealers cashed in on a buoyant market  (see our March issue).  While this obviously can't be sustained,  one stock capable of maintaining double digit earnings growth even when conditions flatten is Lookers, (market cap: £63.7m).  Lookers,backed by US giant, General Electric, a 29.4% shareholder,  plansto make a number of  acquisitions as the sector starts toconsolidate. The catalyst for this activity has been the anticipatedscaling back  of block exemption, the rule which givesmanufactur ...

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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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