General belief has it that the stock market is dead, or at best dull, from now until the general election in the UK. Not correct. When everybody else is looking the wrong way, you'll find some amazing bargains.
The simple fact is that small companies are getting on with their lives. There are companies to be
run and clients to be serviced and they are doing just that. Did you see the news from Majestic Wine in
January? Sales up by around 12% for stores open for over a year and a significant rise in new customers?
The business works hard at its sales method and it's paying off.
And of course Majestic is not alone. Advanced Computer Software (ACS) was bought by many of the AIM VCTs (Alternative Investment Market Venture Capital Trusts)vat 17p and the price is now over 40p. ACS has raised cash and now spent it on a large acquisition and is a continuing growth story.
So this general election isn't actually going to upset the apple cart is it? It's a good justification to worry about all sorts of things, but actually a new Government, if we get one, will find contracts in place. Even' the national health IT programme is subject to long-term contracts that, we suspect, are costly to terminate, so the public sector will continue to spend.
System C Healthcare is an other company acquired by some VCTs. A business like this may, by general consensus, be in the wrong place on a purely simplistic basis. However, in fact, it is a winner from the hiatus because its systems operate at the hospital and Trust level. When the UK gets a national programme, built from the bottom up rather than the top down, it will be in a great position. So, as we've said, the general election isn't going to trouble too many of the smaller companies, as they will acarry on growing.
Setting up IHT reduction through an AIM portfolio is as a result both a prudent investment and good tax planning.
A double benefit!
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