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Market Comment - Febraury

February 2002

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.

Despite our optimistic analysis last month on the outlook for the footsie (in a nutshell, we're in an uptrend that will eventually lead us back to 7,000), we cannot but remain nervous until there is a clear break up through 5,400.  In fact, we would be much more comfortable if we first saw a bit more downside (to the 4,900's at least) before that break upwards.   The corporatefatalities continue, no longer confined to fringe (albeit highprofile) dot-coms.  The corporate skeletons are well and trulycoming out of the cupboard. Enron (probably the biggest bankruptcyever) and Global Crossing are not just bust, but the FBI has beencalled in to explore allegations of fraud.  This cleansing is vital in a bear mar ...

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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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