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Wyevale Garden Centres - Attractive short term trading opportunity

April 2003

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.

Shares in Wyevale (340p) have fallen heavily since last October with the price back to levels last seen in 1998. But the aftermath of the war could lift confidence in consumer related shares and Wyevale is the UK’s largest specialist garden centre operating from 124 centres. Established in 1961 and floated in 1988 it has grown organically and through acquisitions. Since flotation fifteen years ago, Wyevale has delivered compound eps growth of 13%.  The two biggest acquisitions were Kennedys  in  1998 adding 13 centres and Country Gardens in 2000 adding another 37. Country had been underperforming for some time and its margin was considerably less than Wyevale’s. Since then,  three quarters of its si ...

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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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