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Telecom Plus - Persistent buyer in the market

September 2007

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:
  • 171p
Telecom Plus, a high growth multi service utility, has seen its share price hold reasonably firm despite the stockmarket turbulence this month. This is partly due to a persistent buyer in the market which is the company itself, spending some of its £33.8m cash pile to buy back its own shares, a move which should be eps enhancing. Telecom Plus (trading as the Utility Warehouse) is a service reseller providing consumers with fixed, mobile and internet services alongside gas and electricity. A typical customer will spend £50 or £60 a month on such services, which might not sound like a lot if you consider one customer in isolation but over time, the cumulative impact of several thousand customers on the group's pr ...

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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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