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Vega - Management in good cheer

January 2004

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 Vega (166p) have rocketed on the expectation that it will shortly conclude an earnings enhancing acquisition and return to its long haul record of profit growth. The last two years have seen a blip in that record which followed unsuccessful diversifications as well as delays in various large, long term defence contracts for training simulators for Nimrod and Eurofighter. Costs had been built up in anticipation  and with very poor utilisation of consultants, Vega went into losses. But chief executive Phil Cartmell, who we met again last month, has steadied the ship since taking the reigns two years ago and reorganised Vega into three sectors; space, government & defence and public sector. This year will be the first whe ...

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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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