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Merrydown - Launches Shloer dilutable

November 2002

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.

Cider-maker, Merrydown (42p), went public in 1988 and the shareshave enjoyed a rollercoaster ride for most of the last decade, havingpeaked at over 460p in the early 1990s just before former managementembarked on a spate of acquisitions. In 1993, a transforming development was the purchase of Shloer, agrape based adult soft drink, from SmithklineBeecham. This was followedby the European licence for the Two Dogs brand in 1995. Two Dogs,probably one of the first alcopops to be launched in the UK, became anovernight success but then competition emerged including BarcardiBreezer, Hooch and Smirnoff Ice and the business was finally sold at aknockdown price. By 1997, the business was in dire straights and hadbreached its bank covenants. ...

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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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