In addition the brokers often offer shares at a discount to their full value to be

In addition, the brokers often offer shares at a discount to their full value to be sure of getting the issue away.The potential for profit was detailed in a recent survey by the City stockbroker James Capel of new issues over the past two years. It found that they frequently out-performed the market by more than 10 per cent.Richard Hickinbotham, smaller companies analyst at SG Warburg, sees flotations as a chance to invest in the business world's winners as the economy naturally renews itself. "They give us a chance to invest in emerging sectors such as computing and telecommunications, the new companies should outperform other companies in their sectors, and the profits should rise more quickly," he said.However, the risks are considerable. Some entrepreneurs have questionable motives for bringing their businesses to market. Some are trying to re- finance or sell rotten businesses before they fall to pieces, others are keen to retire with a nest-egg, taking their skills and contacts with them. Even the City, with all its expensive analysts and expertise, sometimes finds itself legged over by a clever operator.It is virtually impossible for the private investor to conduct the detailed "due diligence" needed to be sure the accounts do not contain unexplained black holes. There is also a peculiar tendency for perfectly well-run companies to crash into problems soon after flotation, possibly because the managers have spent too much time swanning around the City.Last year, new issues developed a bad reputation.

This was partly caused by a few well-publicised share price failures. Four companies - McDonnell Information Systems, Coda, DRS and Drew Scientific - lost more than 50 per cent of their value soon after reaching the market, for various reasons, some not of their own making. It was also caused by the belated appearance of a recovery which led to hundreds of businesses, many weather-beaten by the recession, desperately rushing to the City while the sun shone.The result was that the flow of companies dried up, with companies like Oasis, Century Inns and Ushers pulling out of flotation attempts at the last minute. In the first half of 1995 only pounds 700m was raised by new issues, compared to pounds 10bn in 1993 and pounds 5bn in 1994 More recent new issues are equally mixed.

The successes include Meconic, which makes controlled drugs, issued at 135p and trading now a touch below its peak at 163p, and Kingsbury, a furniture retailer launched at 27p and now riding high at 110p.But there are also some disappointments, including the gas distribution company International Energy, launched at 112p and now trading at 108p, and the copper and gold mining group Brancote Holdings, floated at 61p and now trundling along on the Alternative Investment Market at 58p.There are half a dozen more in the pipeline at the moment, including JKX Oil & Gas, chaired by the former BP boss Bob Horton, which is in the oil business in Ukraine and Georgia, and is sponsored by Henderson Crosthwaite. The pub operator Century Inns is contemplating a second shot at a flotation, with the help of NM Rothschild, along with Consolidated Coal (Shaw & Co), the household detergent maker McBride (Warburg), the MultiMedia Corporation, a producer of educational aids (Shore Capital), the California-based port operator Benecia Ports (Hill Samuel), and BTG, which licenses new technology (Kleinwort Benson).There are signs that the flow of new issues may pick up this autumn, City analysts say. If it does, new opportunities may arrive for investors.Following last year's disasters, there will be a greater concentration on due diligence and only the best companies will make it to the market, Tim Rowntree, director of equity capital markets at James Capel, said.Also prices are falling as institutional investors are becoming much tougher at bargaining because they feel stockbrokers have taken advantage of them in the past.JKX Oil & Gas is raising money to finance its oil exploration and development business in Russia, Ukraine and Georgia The brokers are Henderson Crosthwaite. The pub operator century Inns is hoping to be second time lucky this summer with the help of NM Rothschild. Shaw & Co are brokers to Consolidated Coal, Warburg is bringing forward the household detergent maker McBride and Multimedia Corporation is being advised by Shore Capital.Meconic, which makes controlled drugs, issued at 135p and trading now a touch below its best at 163p; Kingsbury, a furniture retailer launched at 27p and now riding high at 110p; Silk Industries, maker of silk fabrics, which started out at 125p and is now 134p; and Gus Carter, the bookmaker, which stands at a modest premium of 7p to the issue price of 80p.The gas distribution company International Energy, now 4p off the pace at 108p; the copper and gold mining group Brancote Holdings, floated at 61p and now trading at 58p on the Alternative Investment Market; Country Gardens, floated at 68p and now down 5p at 63p; and Norhomes, a company providing homes for rent as assured tenancies, which was listed at 66p and is now 63p.. Philatelists collect postage stamps; scripophilists collect busted bonds issued by defunct Russian governments, Chinese railways and Chilean mines.

The new craze for collecting telephone cards has not yet agreed itself a name, but it is already big business, with an estimated 4 million collectors throughout the civilised world and a strong commercial edge. The vast majority of cards produced in the UK are definitive issues, ie the bread-and-butter cards issued by the telephone companies for regular use. British Telecommunications has churned out its plain green cards by the million in various denominations. Since 1981 it has issued 100 million cards. Mercury also issued its own sets, which are highly regarded by collectors for their designs and quality. Mercury cardphones will be phased out before the end of the year, and no more new issues are being prepared, but at least a dozen other telecommunications companies, some now defunct, have issued cards mostly for localised use.Telecom companies were quick to catch on to the opportunity to sell commemorative issues, with brightly coloured designs, which go on sale for limited periods and are then withdrawn.BT has issued commemoratives for more than 100 different occasions, from anniversaries to sporting events and worthy causes. The most recent BT commemorative issues include a set of six different 20-unit cards showing scenes from VE Day.Both BT and Mercury have had a lucrative business in producing limited editions of promotional cards for companies like Thomas Cook, Kellogg's and McDonalds. All of them can be used to make telephone calls, although many contain as few as five units.

Some are intended for local use in hotels and stores, and are sold at face value, but most are intended to be given away as novelties to promote the company's wares.Pharmaceutical companies give doctors and dentists cards to "remind" them of their branded products. What they lack in visual appeal they sometimes make up in rarity.Shell issued a series of cards made by the now defunct Paytelco which were sold at filling stations for use in forecourt Mercury phone booths. They included one of Ayrton Senna's racing car which is now a much sought- after memorial to the famous driver, worth pounds 11 mint. Castrol has just ordered 50,000 cards to give away with oil and Nescafe also has a current offer.