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Filtronic - Nokia puts on the squeeze

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.

Filtronic has warned that the weak dollar and translation issues negatively impacted operating profit by £3m, resulting in a lower than expected profit this year. After the announcement house broker, Cazenove, has reduced its estimate to a pretax profit of £0.9m, whereas previously a slightly reduced expectation on last year's £6.7m pretax had been the general consensus. Their forecast for the current year has been reduced to £11.5m, for eps of 11.2p, but our feeling reading their note was that even these could surprise on the downside.The outlook for next year looks bullish in terms of wireless infrastructure, both 2G and 3G. However, what has also spooked the market has been guidance that Filtronic will n ...

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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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