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City File: Spring Ram backers go out on a limb

Saturday 17 April 1993 18:02 EDT
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HAVE Derek Reed and Kevin Carmack of Smith New Court taken leave of their senses? With Spring Ram's accounts to be published tomorrow, they have bravely published a circular on the troubled bathroom and kitchens group which says the shares are a long-term buy.

They may be right. The company is close to appointing a new finance director, and says it 'bloody well hopes' the City finds no further surprises in the accounts. Then again, they may not be. They say investors should ignore the 'spate of unpleasant rumours spread by the tabloid press'. Many of the rumours, however, have turned out to be true. Accordingly, the shares should be avoided.

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