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The Growth Portfolio - July

July 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.

The Growth Portfolio saw a painful decline of 9.0% this month, underperforming our two benchmarks, although this underperformance related mainly to Health Clinic. The Growth Portfolio is still showing a respectable gain of 16.7% since operations started which compares favourably with the FTSE-100 which is down by 19.3% and the All-Share down by 16.3%. Health Clinic's fall was due to its announcement of adopting a newly introduced accounting standard UITF-34 which prevents PLC's from now matching costs with revenues. Health Clinic has made this transition and this looks like the end of the pain. Post-Enron and Andersens scandals, auditors are becoming increasingly nervous. The new standard will impact on any comp ...

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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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