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Diversity keeps Morgan Sindall defensively placed

SHARE TIP: Morgan Sindall (MGNS)
July 9, 2009

BULL POINTS:

â–  Strong order book

â–  Diverse revenue stream

â–  Decent earnings visibility

â–  Shares undemandingly rated for the sector

BEAR POINTS:

â–  Office fit-out business is struggling

â–  Exposed to possible government spending cuts

IC TIP: Buy at 678p

There's no corner of commerce that hasn't been affected by the global economic slowdown, but Morgan Sindall's diverse revenue stream does at least leave the group looking better placed than most. Indeed, the company's operations are ranged across five core operating divisions - office fit-out, construction, infrastructure services, affordable housing and urban regeneration.

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