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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Equipment rental players hitting highs

October 2012

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.

One industry showing some fine form is equipment rental, which covers the hiring out of everything from scissor lifts and pumps & power generation units to earth moving and forklifts. While the economy clearly has some influence the key trend is that clients are looking to reduce their capital expenditures by hiring rather than buying and if anything the credit crunch is accelerating this shift. We take a look at two shares below:Ashtead (339p)Shares in Ashtead have enjoyed an incredible run, rising from a low of 28p in December 2008 to the current 339p. Its main business is in the US (96% 2012 profit), which trades as Sunbelt Rentals and is the second largest equipment rental business with 376 ...

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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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