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Market Comment - April 2012

April 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.

You might recall last month that we considered CRIC cycle analysis and adjusted it for smaller companies - let's call it O'CRIC!  The idea is that current investment cycles, in the murky world of debt deleveraging, follow a path of Crisis-Response- Improvement-Complacency and we believe we are currently at the stage of Complacency.Except that for smaller companies it is possible to be somewhat more optimistic. In particular cash rich businesses, of all sizes, who are perhaps struggling to grow market share, will aggressively pursue acquisitions.In a recent lunch with a smaller company fund manager, he was clearly very excited about the steady stream of takeovers benefiting his holdings, despite the fact that he had foc ...

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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

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