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Morse - Spikes up following Azlan bid

February 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.

The standout feature of some companies is their ability to generate copious amounts of cash as turnover starts to fall and they begin unwinding stock, debtors and creditors. The situation is visible at IT contractor agencies like MSB, Parity and Harvey Nash (though the latter two still have significant debt) and is also true of Morse, 105p, a quoted reseller of high-end servers, which last year converted 107% of its operating profit into cash. As a result, cash was £83m at the end of December, or 63p a share. Morse was established in 1983 and enjoyed its first burst of strong growth as a reseller of Sun Servers, with which it partnered in 1989, but now also sells Hewlett Packard (1993) and IBM. Morse is the largest Sun resel ...

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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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