Police hold winner

By ALISON POTTER
Updated:

 

Ten police officers from Penrith, Cumbria, are celebrating the reversal in their investment club's fortunes after they won the Financial Mail's share tip of the month competition.

The constables and sergeants in the Piggybank club pay £20 a month into the kitty and last year lost only £90 each. The welcome £1,000 cash windfall comes from picking Fastrack Group, a Midlands-based parcel delivery company. Shares have more than doubled from 4 3/4p to 9 3/4p.

'It's great news,' says PC Vince Campbell, the club secretary. 'Hopefully the win will bring us better luck when selecting shares. We seem to be the kiss of death to companies we choose for our portfolio. As soon as we buy shares it's a signal for the price to go down.'

But the group remains sanguine. 'It's a small price to pay for the fun we get from our monthly meetings,' says Vince. 'And we are learning all the time. As we learn more we hope to earn more.'

Fastrack, which customises its delivery service to suit clients' needs, has been mentioned in some influential stock market tip sheets this year, encouraging readers to pick up the shares.

The company, which until last July was known as Cardinal Business Group, has just restructured to focus on overnight parcels.

It operates on a franchise system, effectively letting its name and trading system to private van operators willing to pay about £20,000, or as much as £30,000 if they want to run a depot franchise.

The shares have tumbled from 110p in the past five years as the company racked up a series of losses. But now house broker Wise Speke predicts profits of £300,000 for 1998 and £900,000 for this year.

Though a dividend is not yet on the cards, results of that magnitude should pave the way for payouts to investors.

The Share Tip of the Month competition, which is jointly sponsored by Financial Mail and stockbroker Charles Schwab, is open to all clubs that have been members of ProShare Investment Clubs for three months or more.

For details of how to set up your own investment club, see our guide.

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