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Servicepower

September 2009

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:
  • SVR
  • Price:
  • 6.5p
Servicepower shares were boosted after the company said it has recently received an offer but at a “value deemed below that at which the Board would consider recommending to shareholders.†It said the bidder is reconsidering its position. Servicepower is expected to be trading at better than cash break even and is at a tipping point where any incremental sales are going to fall rapidly to the bottom line. It also has cash of £4m against a market cap. of £12.3m at 6.5p, so we think any offer should be north of 10p to have any chance of success. Strong hold. ...

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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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