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Hargreaves Services - Forecasts reduced but shares look cheap

January 2013

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:
  • HSP
  • Price:
  • 669p
Hargreaves had hardly put a foot wrong in the first six years as a PLC but towards the end of 2012 the newsflow became problematic with the company last month identifying a fraud at the Belgium subsidiary. The company said that the operation contributed a £2m operating profit last year and the potential impact is £15m. At this early stage, prior to the results of a forensic investigation, Jeffries has reduced its full year pretax/eps estimates to £44.4m/113p for the year to end March with  £52.3m/135p next year. Nonetheless, the shares are a Buy. See page 7. ...

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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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