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Staffline - Forecasts upgraded again

August 2011

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:
  • STAF
  • Price:
  • 207.5p
Another eps upgrade during the month with Charles Stanley finally coming round to our view that the recent Fourstar acquisition is going to prove a lucrative opportunity  in the medium-term.  Fourstar has a five year contract with the Government's Welfare to Work Programme to place recipients of welfare payments into sustainable employment, enabling Staffline to potentially get paid twice each time it places an individual into work. Charles Stanley now forecasts eps of 27.4p for the year with 30.6p in FY12 and 38.8p in FY13. At this point we also need to include a correction to our June update when we included a forecast from Liberum. The correct forecast should have read 30.5p in FY12 and 37.4p for FY13. The error is, h ...

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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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