Updates

Erinaceous - Scope for large upgrades

October 2004

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.

Hercules has agreed to an offer from Erinaceous, on the basis of 45p in cash and 2.183 new shares for each ordinary share held. Based on the price of 120p for Erinaceous (which we think has taken an unjustified knock following the news), the offer values Hercules at 307p a share. Based on current year eps forecasts of 39.2p, Hercules' exit multiple is under 8x ; Erinaceous thinks it will be even lower once duplicated costs are eliminated. It could also be a ridiculously cheap deal as Hercules has freehold properties worth £14m which are instantly realisable. Should the deal conclude, the nature and scale of Erinaceous' operations will be transformed from when we first wrote about them. For the year to March, Erin ...

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Wilmington - Pleasing results

Macro4 - 68% of cost base already covered

Erinaceous (April 2006)

Erinaceous (December 2005)

Erinaceous (November 2005)

Erinaceous - Enjoys good trading (April 2005)

Erinaceous (January 2005)

Erinaceous - Shares move to new high (December 2004)

Erinaceous - Scope for margin improvement (August 2004)

Erinaceous Beats forecasts (July 2004)

Erinaceous - First acquisition since AIM debut (June 2004)

Erinaceous - AIM debut with little fanfare (March 2004)

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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