TV tipster blamed for huge losses

A FIRM of stockbrokers is facing a furious backlash from investors who claim to have lost millions because of poor investment advice. Their fury is directed at Killik & Co's tipster Paul Kavanagh who promoted his recommendations in a Sunday newspaper and still appears on a TV tipping programme.

Kavanagh said: 'I understand how people feel. They bought shares at the top of the market and have lost a lot of money.'

An unprecedented campaign has gathered pace since a protest website was put together by former clients, retired Yorkshire pharmacist Anthony Peel, 58, and his wife Sandra. An account giving Killik authority to invest the Peels' money lost £50,000 in 20 months from February 2000. Mr Peel claims Killik bought volatile hi-tech shares and failed to operate a stop-loss system to sell when markets began to fall.

Mr Peel's website has had hundreds of 'hits' from other clients. One said: 'I foolishly looked to Killik professionals to protect me when markets headed in the opposite direction.'

Another claimed: 'The £18,600 I invested is now worth £1,300.' Mr Peel said: 'One lady lost £2m. We have complained to the Financial Ombudsman and are considering legal action. Killik was responsible for our money and should have had downside protection.'

The Ombudsman can order compensation of up to £100,000 for each complaint. Anger focuses on a clutch of tech tips in January 2000 claimed to be 'better positioned to withstand market corrections'.

Baltimore, then 740p, is now 12p, Kewill (1500p) is 20p, Trafficmaster (920p) 32p, Arm (800p) is 296p. Many clients also invested in the failed TV Money Channel.

Kavanagh, Killik's research head, said: 'We are happy the Peel case is going to the Ombudsman. He wanted to invest in an aggressive account. What happened was down to market performance, not negligence. A stop-loss system would not have helped. Prices were volatile and many people would have been shaken out of stocks on the way up.'

Click here for the mykillikaccount.co.uk website.