Two of my favourite companies, Halma and Spirax-Sarco, are covered in this week’s round-up. I also explain why easyJet shares might be attractive. I’m less convinced Apple can continue to grow or that SSP Group offers value and I think shares in pub group Marston’s could be a value trap.
I am an Apple (US:AAPL) fan but not an Apple fanboy, making me one of the increasing number of consumers who don't feel the need to make every expensive upgrade. This is a problem for Apple, and I think the recent caution investors have shown towards the company's future growth prospects is justified.
SSP (SSPG) is a pure play on food and drinks outlets at travel locations. In my view, the company is earning reasonable return on capital employed (ROCE) but it isn't an outstanding business.
Owning and running pubs is a hard way to make decent money. Pub and brewing company Marston's (MARS) offers a chunky dividend yield but shows signs of being a value trap.
Halma (HLMA) and Spirax-Sarco (SPX) are great examples of businesses that solve problems for their customers and are difficult for competitors to copy. Reasons why I see both companies as good long-term investments, the issue is the punchy valuations.
Business conditions for airlines are notoriously volatile, which tends to make airline stocks more suitable for traders than long-term investors. That said, there are reasons easyJet (EZJ) shares could be quite attractive.
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