Small Company Share Watch Analysis
by H. Parry, 20/6/99
This article is intended to show the performance of one of the more popular tip sheets available: Small Company Share Watch (SCSW). Each month they issue an eight-page newsletter. In this they comment on the market over the previous month, give short updates on fifteen or so shares, comment on the performance of their own portfolio and make two main share recommendations.
In the recommendations they cover the company in depth and explain why they think it is a particularly good time to buy. But are they right? That’s what you will be able to make your mind up about in this article, as I shall list their main recommendations from June ’98 to June ’99, together with the price they were tipped at and the price on 18th June ’99 - the day I compiled the figures for this article.
This is not entirely scientific. For instance, it is unlikely that you would actually be able to buy the tipped share for the price they tipped it at the Monday after the newsletter is published. Generally, you are better off waiting a week or so after a tip before buying a share, as it often jumps in price in the excitement immediately after the tip and then drifts back down as the interest recedes. Even then you will probably have to pay a bit more for the share than they did.
This article is meant to be an indication of how successful you would be if you blindly followed SCSW’s monthly tips. Maybe you could compare it to a randomly selecting two shares a month, or choosing shares using you own analysis.
Disclaimer : Please note that these articles do not necessarily represent the views of UK
Share Net. The views expressed are those of the authors. The price of shares can go down
as well as up. No infringement of copyright is intended, any offending articles will be
removed as soon as possible when notified.
Marks and Spencer,