Primary Recommendation

Maxima - Sitting duck to a predator on a PE of 6.6

September 2008

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.

Companies supplying business software systems have been gripped by bid interest from both trade and private equity buyers in the past year. One example, a company which we recommended at Sharewatch, is Computer Software Group (CSW), a supplier of systems to the legal and charity sectors, which last year received a Â£99m management buyout backed by Hg Capital. Hg went on to merge the business with Iris, a supplier of software for accountancy practices and within two months it had flipped the combined entity to another private equity player, Hellman & Friedman, for Â£500m. CSW accounted for a third of the combo so the deal nicely greased the palms of CSW management in no time at all. More recently, SSP, a supplier that tota ...

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Maxima (January 2010)

Maxima (November 2009)

Maxima (October 2009)

Maxima (April 2009)

Maxima (October 2008)

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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