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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Indebted firms rally as refinancing concerns fade

May 2009

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.

A striking feature of the recent rally is that a number of stocks perceived to be highly indebted are enjoying sharp upward spikes as investors note tentative signs of improving availability of credit. The fact that many have been battered to over-sold levels means that those that do survive this could go on to trigger large gains for those prepared to buy and be patient. We highlight a selection of ideas below.• National Express (254p)At its peak in October 2007 transport operator National Express commanded a market value of almost £2 bn. and as the first economic storm clouds rolled in it was being feted as a classic defensive stock capable of withstanding a recession. Since then the corr ...

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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.

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