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Superglass - Interesting new issue

July 2007

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.

One highly desirable characteristic for any growth share investment is “negative working capital.” In these companies, products are delivered and sold to the customer before the company even pays for them. One not immediately obvious company showing this characteristic is Superglass, a supplier of glass wool insulation products. It operates in an industry where its distributors pay it quickly in order to get additional discounts as well as volume rebates at the year end for hitting targets. According to Superglass, which is to start trading on the Full List later this month, the market for thermal insulation products is worth £650m, of which glass wool accounts for 26%. The other main type of insulation is foam-b ...

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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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