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2Ergo - Growing like topsy

July 2004

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 2Ergo (125p) organised a lunch for a City audience following its interim results there was just one taker, and even he arrived 20 minutes late. But then many would not find 2Ergo an easily understandably story. Nor does the group look a particularly cheap share having reported a profit of just £161,000 for the first six months.  2Ergo is clearly very early stage and so high risk. But the business is growing like topsy.  Sales for the first six months were £4.45m compared to £1.57m in the same period last year and the expectation is that full year sales will balloon to £10m and generate a £1m operating profit. Dealings in the shares started on 11 March  following a placing of 5.83m ...

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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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