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Cape - Directors buy

April 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.

  • Epic Code:
  • CIU
  • Price:
  • 71p
Shares in Cape (CIU; 71p) continue to gyrate. Having touched a low of just 18p last month they subsequently bounced sharply after the company reported excellent results for 2008. Three directors bought 118,000 shares at 77p-80p during the month, when just two weeks earlier they could have had them for just a quarter of the price. But then even at 80p they represent excellent value compared to the highs of £3 last year.There have been some doubts over Cape’s three Australian assets bought at the end of 2007, which some investors have fretted over as it has resulted in too a high level of debt. The rally in Cape’s share price now reflects relief that this wasn’t a balance sheet high wire act and the proof is in the pudding wi ...

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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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