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Character Group - Piling up the cash

November 2010

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.

  • Epic Code:
  • CCT
  • Price:
  • 160p
Operating in the choppy toy industry has been no bar to the sizzling performance from Character (CCT; 160p). Back in the December '09 issue, we put the shares forward as one of our mini-portfolio of NAPS for 2010. At the time, broker Charles Stanley was forecasting a return to the black for the company in the year ended 30 August to the tune of £2m pretax. After three upgrades to that forecast, the broker now expects Character to report a pretax profit of £7.5m when it announces these results in December. Earnings progress will have been even more blistering because Character has generated so much cash in the past 18 months that it has been able to buy over half of all the shares it previously had in issue. In fact, the origi ...

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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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