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Microgen - Operationally highly geared

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.

We  tipped Microgen (24p) in no less than six issues during 1999 at prices as low as 108p, with the shares subsequently surging to 893p. They have now come full circle and at 24p look dead in the water. That seems unfair, especially given recent progress.Much of the blame for the decline can be laid at the door of overzealous forecasts on the takeup of e-billing in the UK. Back in the dotcom madness, a report by Ovum forecast over one billion bills per annum would be distributed between businesses electronically in the UK by 2005, enabling their download  into spreadsheets for analysis. Microgen's experience had indicated a potential average revenue per invoice of 15-20p, producing a potential B2B e-billing distribution ...

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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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