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Eaga - 88% and 71% visibility for next two years

June 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.

Tipped in March, Eaga will have started trading on the Full List two days before this issue was due to land on doormats. The fact that the group has had a curious history, starting off life as a charity plus the fact that it operates under the various names of its subsidiaries, means that the Eaga name is unlikely to be familiar to many investors.The jewel in the group’s crown are the contracts Eaga holds to manage government funded schemes to eradicate the problem of fuel poverty (where a household cannot afford to keep warm). In the early days, Eaga simply administered the scheme and managed outside suppliers but the company has been particularly energetic in acquiring businesses which can carry out much of the work themse ...

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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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