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Telecom Plus - Customer growth accelerates

November 2011

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:
  • TEp
  • Price:
  • 737p
More new highs following a Q2 trading update, which  reported accelerating growth in customer numbers. But then we had expected this much in our last update in the July issue when we pointed out the large and recent increase in distributors and the reduced churn amongst customers. By annualising the current run rate Telecom Plus could easily add 56,000 customers this year, which is almost twice the number brokers have been expecting.  Peel Hunt forecasts eps of 33.2p for the year to end March. Not cheap then but eps looks likely to be beaten and we think momentum will carry them far higher. Very s ...

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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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