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Growth Portfolio 2

May 2006

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.

The choicest spoils this month have been for those trading in the mid and larger cap. stocks, with the FTSE-250 moving above 10,000 for the first time driven by continuing gains in mining stocks and bid rumours. Of course, these are also the main hunting grounds for those trading on margin. Meanwhile, small companies were largely ignored and the portfolio is virtually unchanged. One problem is a heavy supply of new issues to AIM. As one fund manager noted, this oversupply has begun to create situations where strong performance is being ignored and underperformance severely punished. It’s precisely times like this that the best bargains are going to be unearthed. This was therefore a particularly tiring month ...

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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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