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Hargreaves

August 2007

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.

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Hargreaves has issued a pre-close trading update ahead of reporting its full year results on 3 September. This said that the order book and trading across the group are at record levels. Brewin Dolphin forecasts £9m pretax for eps of 25.7p for the year already ended in May. During the year, Hargreaves made three acquisitions including Norec, Maltby colliery and the Simon Bulk warehousing and distribution business, which has significantly increased the scale of the group's operations. Including these acquisitions for a full year, Brewin's current year forecast is £15.5m pretax and eps of 41.1p. The shares have doubled since the January ‘06 issue when they were a main rec ...

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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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