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Phil Oakley's shares round-up 7 December

I like to identify shares in quality companies but its important not to over-pay for them. Some of this week's analysis is about getting the balance right.
December 7, 2018

This week I ask if the new Smithson investment trust is good value, question Stagecoach's prospects for growth and assess whether manufacturer Victrex can maintain its current profitability. I also weigh up the attractiveness of Stocks Spirits versus more expensive peers and explain why I'm still positive on Britvic. 

Smithson Investment Trust (SSON) has been one of the most popular trust launches for many years. I'm a big fan of the emphasis on quality measures, such as searching for companies with high returns on capital employed (ROCE), but some of the fund's picks were on rather extended valuation multiples when I looked over the holdings. 

Stagecoach (SGC) has a chequered history. It has a good reputation as an operator of bus services in the UK, but has come a cropper in its ventures in the US and in UK rail. Half-year profits released on Wednesday morning were better than expected by analysts and saw the share price jump by more than 10 per cent, but only the UK bus division saw higher profits than a year ago. 

The strategy of industrial plastic producer Victrex (VCT) is to position itself at the heart of specialist use markets. If it can do this it stands a good chance of preserving its very high levels of profitability.

Stock Spirits Group (STCK) maybe cheaper than some illustrious competitors, but I ask whether that makes it a more attractive choice for investors.

Britvic (BVIC) is a company I like and the business is doing well. I think there could be more improvement to come. 

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