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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Albemarle & Bond

November 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.

As promised, we met with Albemarle’s chairman, Charles Nicholson,over the month, who was in great form as you would expect as Albemarlehad just reported increased earnings by 51% to 5.7p in 2002.  Albemarle is the largest chain of pawnbrokers in the UK, operatingfrom 51 stores.  Around 50% of the company’s profit comes frompawnbroking and its loan book, has a reliable indicator of the futurelevel of growth, rose by over 20% from £6.2m to £8m during the year. As we highlighted in our original recommendation, Albemarle doubledthe size of its estate from 25 to 50 stores between 1998 and2001.  As it deliberately keeps marketing costs down (and returnson investment up)  by relying on  customer ...

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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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