NSB - 2003

Thought I would join in and offer a few potential gainers for next year. The only proviso is that the markets continue on up as most of us expect. Most of my predictions are based loosely on charting, and as a result, I do actually think that we are due fairly strong downturn on the FTSE quite soon to around 4000 or even 3750 if the economic numbers aren't there at reporting time or there is some major incident. The FTSE like a share price chart, needs a major correction to keep things balanced. However, following on from the pullback I think the FTSE will move up quite rapidly to around 4650 and if the second half of 2004 is strong, it could achieve around 5200.

As far as individual companies go, I've sort of taken the view that if a company was bombed out, and the share price took a beating but has made it through the last 3 years and come out leaner and fitter, then these are the shares which have the greatest potential for rises since world economies should be getting better.

Dimension Data (DDT) dropped from 693p in 2000 to a low of 13.75p in 2002. At 37.5p, it is still 95% down from it's high a few years ago with much potential for growth and the chart makes this look good to at least 70p.

Skyepharma (SKP) has been unfortunately, a jam tomorrow company, with enormous potential and a great pipeline. Their reformulation and delivery technology is used by the major pharmas, and economically they are on the brink of making profits for the first time. Fidelity has been increasing it's holding substantially in the last month or two. At 76p now my target next year is 110p and possibly higher if they do move into profit. Only drawback is Dr Gonella (an ex founder) who now only holds some 7% but wants out. He usually sells some of his holding around each Christmas to fund other research (already done it this year) but is committed to doing it responsibly.

Finally there's Britannic (BRT), a bombed out insurance company. It's been through hard times, seems to be on the road to recovery and is a potential takeover target. Charting wise it's just about to break out above 290p to 350p. If if it can break through 350p then 700p is on the cards.

Of course these are just my views and everyone should do their own research.

NSB is still my favourite for potential gains as are some of the other techs and telecoms, but the others I've mentioned are there to try to keep some sort of balance.

I wish everyone a very happy and prosperous New Year.