Tale of two stocks

Finweek English Edition - - SIMON SAYS -

Last week , we wrote how t he RocoMamas deal by Spur was hugely promis­ing as it showed new think­ing by man­age­ment. The trad­ing up­date sup­ported this view. The prob­lem is that Spur is not cheap on a his­toric price-toearn­ings mul­ti­ple of around 25 times, the same as Fa­mous Brands’*, with the lat­ter al­ready hav­ing proved it­self. That said, Spur has more space for growth as it has come late to its ex­pan­sion strat­egy and Fa­mous Brands is a mas­sive op­er­a­tion, which makes it more dif­fi­cult to achieve great growth with ev­ery pass­ing year. I stil l pre­fer Fa­mous Brands as it has proved it­self re­peat­edly and man­ages to get great growth, even in tough con­di­tions and off a high base.

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