This week I ask whether Telford Homes is a play for the brave contrarian investor, assess the growth prospects for Aim-listed Cake Box and consider quality food producer Cranswick. I also scrutinize pub group Mitchells & Butlers and the valuation of niche business Treatt.
Mitchells and Butlers (MAB) is trying to woo more customers with a more upmarket offering but sales growth has been weak and the business makes a poor return on capital employed (ROCE).
Quality meat producer Cranswick (CWK) generates a very respectable and consistent ROCE and should be a fairly resilient business going forward, but is it already valued high enough?
Telford Homes' (TEF) strategy is to focus on building homes for rent and there is plenty to like about the business. The share price has taken a battering in 2018 but it could be one for the braver more contrarian investor to consider.
Specialty essential oils business Treatt (TET) has a cautiously optimistic trading outlook but in my opinion the shares are too expensive. I have similar reservations about the valuation of shares in Aim-listed Cake Box (CBOX).
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