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Telecom Plus - Watch the cash pile grow this year

September 2010

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:
  • 369p
Telecom Plus, the low cost utility provider, has featured successfully in Sharewatch  a couple of times in the past and even though earlier this month the shares touched a 52-week high (before retracing), this was only equal to their 2008 peak. This time round Telecom Plus is a much stronger business with forecast earnings per share and dividend for the current year both expected to be almost 50% higher.In 2008, Telecom Plus had sales of £186m, a pretax profit of £16.8m, earnings per share of 17.6p and a dividend of 14p. The current year is set to see record profits with the corresponding forecast from analysts at KBC Peel Hunt being £418m, £25m, 26.2p and 22p, respectively.The reason, then, why the shares have hun ...

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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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