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The Growth Portfolio 2 - October

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.

Although the month saw new 2004 highs for the FTSE, against a relatively slow time for most small caps, the  sharp rise in Accident Exchange meant the portfolio outperformed, with a 5.3% gain versus 2.4% for the benchmarks. Reviewing the newsflow,Photo-Me had a bullish update in the form of an order to deliver 165digital minilabs to Tesco; half of these this year should add c.£6m tosales at high margin. The new chief executive at Highbury has used thefirst set of results (we'll comment next month) to kitchen sink theresults. This caused an initial drop in the shares, and certainlyHighbury has a big balloon in its debt repayment schedule to worryinvestors, although the shares have since bounced back as fivedirectors ...

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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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