Tale of two stocks
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.