Rail shares on track for success
DURING 2002 shares have taken a real battering.The FTSE index, which measures share prices, has fallen from 5300 in January to 3919 today.But anyone who had nerves of steel could be cashing in right now – there is a well-known Ipswich-based company quoted on the alternative stock market which has seen its value almost treble since June.
DURING 2002 shares have taken a real battering.
The FTSE index, which measures share prices, has fallen from 5300 in January to 3919 today.
But anyone who had nerves of steel could be cashing in right now – there is a well-known Ipswich-based company quoted on the alternative stock market which has seen its value almost treble since June.
Since the Hatfield disaster in October 2000, GB Railways – the parent company of Ipswich-based Anglia Railways – had seen its share value hit the doldrums.
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Cash problems post-Hatfield meant the company lost much of its value.
The value of its shares slumped from about 70p each to a low of 36.5p each.
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Since July this year when there was talk of a bid for the company, however, the share price has been boosted.
It went up to about 80p, and then bobbled along at that level until the start of December when it took off again.
Today a share in the company is worth 102.5p. If you'd invested £100 in GB Railways in January, you'd be sitting on £274 today.
But you would have needed nerves of steel – at one stage the future of the company was in doubt as it reported heavy losses.
Even today the outlook is uncertain as it prepares to bid for the Greater Anglia rail franchise early next year – the bid documents will be published in January.
But there is a growing belief in the railway industry that GB Railways, the smallest independent rail company in Britain, could have a bright future – and that has boosted its prospects for the future.