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Photo-Me - Demand continues to outstrip supply

August 2003

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:
  • PHTM
  • Price:
  • 117p
Last month, commenting on the results, with the price at 76p, we said the shares were poised for the 100p level. We didn’t expect them to beat our target in just a month although we did foreshadow that demand was exceeding supply and this would be addressed by moving manufacturing into Poland.What triggered the jump was exactly that- confirmation that Photo-Me has reached agreement to outsource manufacturing of its DKS 1500 digital minilabs to Flextronics’s operations in Poland. Flextronics is to manufacture an initial 1,800 units and production is scheduled to start towards the end of 2003, at an initial rate of 200 units/month. Gain since January tip: 500%. You should have taken a pa ...

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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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