Here are three shares to buy now.
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The shares in question are currently on my Champion Shares 'buy list'. As you may already know, my Champion Shares selections beat the FTSE All-Share during 2005 and 2006 so far and I believe I can extend that record into 2007. I'm hoping the shares on my buy list will lead the way to another successful year.
To give you a taste of my Champion Shares recommendations, here's a brief summary of three of the shares on my buy list:
Tip for 2007 No 1 (selected December 2006)
This tip is small-cap that appears to have fallen out of favour with the City. I reckon four profit warnings have been issued in the past eighteen months and the shares are down 80% from their high. However, the company's most recent update confirmed trading was in line with full-year expectations and the immediate revenue outlook seemed positive.
Counterbalancing this company's past difficulties is valuation. I reckon the P/E is low, the dividend is high and net assets represent a large part of the market cap. But I admit further mishaps could well occur here and leave my valuations sums high and dry.
Tip for 2007 No 2 (selected October 2006)
This tip is a large-cap share that is not listed on the London market. Don't worry though -- the company is a very famous name and its shares can be bought easily through the stock exchange's International Retail Service.
In my opinion, this business enjoys an industry-leading position, decent sales growth potential and net cash in the bank. But the industry is dynamic and this business has at times lost out to rivals in the past. Recent results were a little below market expectations with margins coming under pressure, though I'm confident this business can progress over the long haul.
Tip for 2007 No 3 (selected September 2006)
I believe this tip is a quality AIM share. This company claims to be market leader in a niche industry and, in my view, earns very good margins and generates plenty of cash. But despite providing two positive trading statements since my recommendation, the share price remains under my buy limit. Hopefully the market will re-assess the company when it publishes its next results in January.
My main worry here concerns overseas expansion -- a European division has been created recently and US acquisitions have also occurred. Sad to say, but I've seen too many listed businesses hit trouble when venturing abroad!
What now?
Though I cannot offer any promises, I hope these three shares will be among the big winners of 2007. But I could be wrong and, as with any stock-market investment, they could lose you money over time.
Once you've joined the Champion Shares community through this 30-day free trial, this member-only page will reveal the above trio of tips -- and all my other recommendations -- in full.
Of course, Fools enjoying the Champion Shares service will receive new recommendations throughout 2007. Next year's first tip is due to be published on Wednesday, January 10th. And for a limited time only, new members can enjoy a year of Champion Shares tips for just £99 -- a 33% discount on the standard price.
Risk Warning
You run the risk of losing money when investing in shares. Prices may change quickly, they may go down as well as up and you may not get back the full amount invested. You should not invest using money you cannot afford to lose. We have taken all reasonable care to ensure that all statements of fact and opinion contained in this publication are fair and accurate in all material aspects. Investors should seek appropriate professional advice from their stockbroker or other adviser if any points are unclear. Champion Shares gives general advice only, and the investments mentioned may not necessarily be suitable for any individual.
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