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Market Comment - February 2009

February 2009

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.

When smaller company price earnings (PE) ratios are between 2 and 4, not a few but throughout a sector, someone is waving a big flag. Nonetheless, as we have highlighted over the last couple of issues, good value is not enough to trigger a stock market recovery and there is a lack of precedents for where we find ourselves.There have been positives over the last month. The Government announced the expected extension to the previous bank rescue scheme, with the primary objective of restoring the banks' willingness to lend, which is very positive for smaller companies. It will take time for these initiatives to work through but smaller companies are not holding their breath; their inherent dynamism (seldom acknowledged by the doomste ...

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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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