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Financial Objects - Proposes to buy 30.3% of equity at 50p

November 2002

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 shares jumped on the long-awaited news that Financial Objects was to return £6m excess cash to shareholders by way of a tender offer at 50p a share. If accepted in full, this will reduce the number of shares in issue by 30.3%. On that basis, the number of shares still in issue will reduce to 27.6 million (market cap. £12.7m) although cash balance will still be £10.6m, or 38.5p a share, which nicely protects the downside whilst revenues from Activebank continue building. Hardlyanything in the price for over £6m annual service revenue, or the IPwhich has cost over £20m to develop. The shares will be one of thefirst to bounce once the financial services sector recovers.  &n ...

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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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