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ClearStream - 85p a share cash bid from US firm; gain to date: 81%

October 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:
  • CTN
  • Price:
  • 85p
Shares in Clearstream, the supplier of peripheral angioplasty devices, shot ahead from 46p to 81p after an agreed 85p a share cash bid from New Jersey-based CR Bard.The shares were tipped at 47p in March and the premium demonstrates not just the unique nature of the company's technology but also some of the undervaluation facing small caps at the moment. We reckon there will be further M&A in the small cap sector in coming months at similar big premiums. Accept  the offer; gain in 6 months is 81%. ...

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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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