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EAGA - Looks like a hot new issue

March 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.

Watch out for the flotation, expected next month, of Eaga, a leadingprovider of residential energy efficiency solutions. The float on theFull List (probably to raise £50m) is expected to be handled by brokerBrewin Dolphin, who is building a bit of a reputation for floating somegood old economy businesses like Hargreaves and Scott Wilson.The genesis for Eaga was the NEA, a charity organisation establishedin 1990 with responsibility for administering Government grants for lowincome households to improve energy efficiency in their homes throughcavity and loft insulation, draught-proofing and boiler repair andreplacements. In those days there wasn't much of a business with thecompany, which is now highly profitable, struggling along ...

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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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