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Country & Metropolitan - Affordable housebuilder on a PE of 5.3

May 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.

Country & Metropolitan (195p) is only the third housebuilder we have met in the 11 years that Sharewatch has been going.  According to one report this month by broker, Numis, it is also the one to show the highest eps growth, with eps likely to grow 47.4% this year well ahead of the 14.5% average for the top 16 quoted housebuilders. C&M’s profit has already been growing strongly, at a 75% annual clip over the five years to June ‘03, with eps  over the same period growing 44%. C&M floated on the Full List in 1999 at 68p. It first hit the headlines when it accumulated a 26% stake in quoted rival Tay Homes in 2001 as a prelude to a bid, before selling the stake to rival Redrow at a profit.  But ...

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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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