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Metal Bulletin - Sells lossmaking Avalon

October 2005

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.

Metal Bulletin’s sub-sectors continue to be buoyant as evidenced by H1 results to 30 June. Chinese and Indian demand and strong commodity markets are driving its metals business whilst an uncertain global economic outlook is driving demand for independent economic research, particularly from hedge funds. In addition to that backdrop, Metal Bulletin is also benefiting from a transition from print to electronic delivery of its products. Turnover was up 26% to £24.4m or 23% excluding foreign exchange. With most of its costs fixed and high gross margins, that revenue growth was converted into 31% operating profit growth to £4m. Profit before tax was up 29% to £3.9m and eps lifted a similar amount to 5.0p. < ...

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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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