Some of these opportunities are better than others. For example, while shares in Brown (N.) Group (LSE: BWNG) might look like a steal at current prices, the company’s falling earnings concern me.

Struggling to grow

According to City analysts, N Brown’s earnings per share are set to decline by a staggering 71% this financial year to 22.6p. A slight recovery is expected for fiscal 2021, but this won’t be enough to offset the decline.

Unfortunately, it doesn’t look as if the company will meet this target. Analysts were expecting the firm to report a slight increase in revenues for the year, but according to a trading update published by the firm today, total group revenues declined by 3.8% year-on-year during the 13 weeks to the 1st of June 2019.

Digital revenues increased by 3% during the period, and financial services revenues increased 8%, but this wasn’t enough to offset an overall decline in product revenues of -5.4%. According to management, this decline was “in line with our strategy of scaling back unprofitable offline marketing and recruitment.“

If this trend continues throughout the rest of the year, I think it is going to be difficult for the company to meet the City’s earnings target, and this could mean the stock might fall further from current levels.

Indeed, N Brown’s current valuation tells me that the market isn’t expecting much from the company for the foreseeable future, and today’s trading update appears to support that view. With that being the case, I’d avoid N Brown for the time being.

A sector leader

If you’re looking for a replacement for N Brown in your portfolio, then I highly recommend taking a look at Next (LSE: NXT).

In my opinion, Next is one of the best retailers in the UK, and the company is coping really well with the current retail environment. Sales are still growing at a steady clip, and management is working hard to squeeze costs from the business wherever possible. Full price sales in the 13 weeks to 27 April were up 4.5% on last year.

On top of this growth, the company is trying to reduce its rent roll and improve efficiency with online sales. By processing returns and orders in stores, rather than in dedicated warehouses, Next believes it can cut the cost of processing each online order substantially.

Despite these efforts, City analysts are still expecting the firm to report a near 10% decline in earnings per share for the year. This decline is disappointing, but considering the fact that Next’s earnings are only projected to slide 10% when so many other retailers are collapsing into bankruptcy, this modest contraction is impressive in my eyes.

That’s why I think the company would suit my portfolio today. To add to its appeal, shares in Next currently support a dividend yield of 3% and management is looking to return an extra £300m of surplus cash to investors this year on top of the regular dividend.

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Rupert Hargreaves owns shares in Next. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Long and short of it

The table below shows forecast price-to-earnings (P/E) ratios and dividend yields for the three companies. It also shows what mainstream City brokers are recommending to their clients (source: WebFG), as well as a summary of current short positions in the stocks — that’s to say, bets on their share prices falling — held by sophisticated hedge funds (source: UKShortTracker).

As you can see, P/Es are super-low across the board and dividend yields are huge. No City brokers are negative on the stocks — indeed, a good number are positive — but there are hedge funds holding significant short positions. In my experience, it pays to be extra cautious when assessing stocks with high levels of short interest.

Kier’s hardiness questionable

Kier is currently the most heavily shorted stock on the London market. I agree with my colleague Roland Head that its net debt is too high for a low-margin business. Furthermore, since the collapse of sector peer Carillion, awarders of contracts are paying closer attention to the financial strength of bidders. Kier’s current level of debt could be a hindrance to winning new contracts, in my opinion.

Debt isn’t the only reason for the large short position here. Kier sports a number of other possible ‘red flags’ that Carillion had displayed, including reverse factoring, joint venture usage, and myriad annual exceptional items. Add these accounting complexities to the high debt and this is a stock I’m happy to avoid.

Crest of wave passed

Crest Nicholson issued a profit warning last month, saying the market for new homes in London, and at higher price points in the south of England, had been tougher than anticipated. I’ve been banging on for a year about how low P/Es and high yields, combined with high margins and high price-to-tangible book values (P/TBVs), are top-of-the-cycle features of the boom-and-bust house-building industry.

I’m interested in house-building stocks when the P/TBV is at, or below, one. Crest Nicholson is getting there, but isn’t quite there yet, with its P/TBV having fallen to 1.1. As such, it’s a stock I’m still avoiding, but one I’m keeping a close eye on. I view a reduction in short positions since the profit warning and a recent big share purchase by the executive chairman as further signs we’re getting near-value territory.

Browned off

N Brown is transitioning to an online-only business but growth is being handicapped by falling offline sales, and the tough retail environment. Aside from seeing only the very strongest businesses in the retail sector as worthy of investment consideration, Brown’s reliance on revenue from charging customers high interest on paying by instalments, further weakens it as an investment candidate, in my eyes. Another negative is a recent profit-denting draft ruling in a VAT dispute the company is involved in with HMRC. This is a stock I’d avoid even if there were no short positions in it.

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G A Chester has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Over the past decade, companies like Burberry have profited significantly from the rise of the Chinese middle class, who have rushed to spend their new found wealth on luxury products, helping Burberry increase revenue by nearly a third over the past five years.

However, analysts are now starting to worry that the good times could be about to come to an end for Burberry and its peers. With economic growth in China moderating, and demand for luxury goods and products around the rest of the world potentially cooling, the outlook for the sector is not as bright as it once was, they believe.

Time to sell? 

These concerns have resulted in investors dumping the company’s shares. Over the past 30 days, the stock has fallen just under 18%, underperforming the broader FTSE 100 by 14.4%.

I believe this weakness could be an excellent opportunity to snap up shares in the luxury retailer. Concerns about a slowdown in China are nothing new. There have always been stories circulating that the region’s growth is going to grind to a halt and Chinese consumers will stop spending. But despite these worries, Burberry’s growth hasn’t shown any signs of slowing down. I don’t expect the trend to end any time soon.

What’s more, even if growth does slow, the company has plenty of resources it can use to keep the wheels turning. At the end of fiscal 2018, there was £892m of net cash on the balance sheet, enough to fund the dividend for at least four years (at £170m per annum) if business grinds to a halt. 

The current dividend yield is 2.6%, which is below the market average, but in my opinion, it is worth accepting the lower than average yield for the security offered by Burberry’s balance sheet. Management is also returning cash to investors via share buybacks. 

And finally, even though the stock might look expensive, changing hands for 21 time forward earnings, I believe this is an appropriate price to pay for such a well-established brand.

Bleak outlook 

Burberry’s global scale and defensive nature easily justify the stock’s high valuation. At the other end of the valuation scale, N Brown (LSE: BWNG) looks cheap, but I’m not rushing to buy this clothing retailer.

In the past, I have recommended buying N Brown for its dividend yield, which in hindsight was a mistake. Yesterday, the group announced it is cutting its dividend to try and preserve cash. Earnings are also falling as it seems N Brown is suffering from the same problems affecting the rest of the UK fashion retail sector.

At this point, it is difficult to try and figure out if N Brown is good value at current levels. Revenue and margins are sliding and the fact that only a few months ago management seemed optimistic about the outlook for the group seems to suggest things are going south fast. 

It could be some time before the group manages to stabilise revenue. With this being the case, I’m staying away from the stock for the time being, even though it has fallen to the lowest level in over a decade.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Burberry. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, today I’m looking at one FTSE 250 dividend stock with a dividend yield of 9.5% that seems to be entirely sustainable.

Hated by the market

N Brown (LSE: BWNG) has to be one of the market’s most hated stocks right now. Over the past 12 months, shares in the company have lost more than 50% as investors have run for the hills. But despite investors’ negative view of the enterprise, fundamentally, the business appears sound.

As my colleague Royston Wild pointed out at the end of July, N Brown’s sales expanded 0.4% for the three months to the end of May. This growth is hardly show-stopping, but the enterprise is still growing. Internet sales of its so-called Powerbrands like Jacamo and JD Williams rose 9% in the last quarter. 

I’m not the only one who believes that N Brown’s underlying business appears sound. After the May trading update, City analysts went back to revise their growth forecasts for the company. Before the update, earnings were expected to remain flat in 2018, now, however, growth of around 6% is predicted. A similar expansion is pencilled in for 2020.

This growth should support the firm’s dividend. Based on current forecasts, the 14.3p per share payout will be covered 1.6x by earnings per share (EPS). In my view, this level of cover is more than enough to maintain the payout, with room to spare. 

What’s more, after recent declines, N Brown is trading at a forward P/E of just 6.5. I reckon the market is being too pessimistic here and N Brown is too cheap at current levels. Indeed, if trading improves, the shares could double from current levels. 

Costly investment 

One FTSE 250 company that I am less enamoured by is WH Smith (LSE: SMWH). It has been on a staggering run of growth over the past decade with EPS growing at an average annual rate of 13%. 

The problem is, today it looks very expensive. The stock currently trades at a forward earnings multiple of 17.5, a multiple of that in my view is more suited to a fast-growing tech business rather than a retailer. To be able to justify a P/E of 17.5, you have to believe that it can continue to grow earnings at a double-digit rate for the next few years. City analysts don’t think this is likely. The City is predicting EPS growth of just 5% for 2018 and 7% for 2019. 

I’m concerned that these figures are hiding a more worrying trend. Growth is stagnating despite the company’s aggressive overseas expansion plan. WH Smith opened eight new stores in Madrid airport’s Terminal 4 in mid-August and six stores are planned in Rio de Janeiro.

For a company that is continually breaking into new international markets, I would expect faster bottom-line growth. The figures indicate that growth at home may not be as strong as management would like.

With this being the case, I reckon it is sensible to avoid the shares for the time being as the high valuation does not leave much room for disappointment.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended WH Smith. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

But retail isn’t dead, it’s just, well, if not resting, going through a transformation. And what’s going to emerge will surely be very different from the old “traipsing round the shops” model of old.

I reckon N Brown, owner of a number of brands including JD Williams, Jacamo and Simply Be which cater for plus-size customers, is ahead of the curve (pun intended).

The past few years have seen the company ditch its old mail-order business and move entirely to online shopping. Judging by the success of companies like Boohoo.com and the struggles faced by the high-street stores of Marks & Spencer, that’s surely the way to go.

N Brown does actually own 20 bricks-&-mortar stores, but in its last full year they only contributed 2% of group revenue (and lost money). The company is currently considering closing these stores — an obvious good move, in my view.

I reckon weak sentiment has pushed the shares too far down now, and with earnings expected to start rising slowly again, we’re looking at P/E multiples of under eight. Oh, and forecast dividend yields of almost 8% too.

The dividend might perhaps come under pressure, but analysts are actually predicting a modest rise by 2020. I think N Brown is a risk worth taking.

Safe as the proverbial?

Confidence in housebuilders is also starting to falter, though few have seen their shares suffer as badly as Crest Nicholson Holdings (LSE: CRST). From a high of 638p in May 2017, we’ve seen a 35% fall.

That’s partly due to fears that the housing market is slowing down, though I can only see that as a relatively short-term thing — surely an overall flat market for even 20 years would still see housebuilders making attractive profits.

The effect was compounded by first-half results, which showed a 2% decline in earnings per share, and that’s got to have driven away lots of growth investors now that the rampant recovery phase of the industry is coming to an end.

Reality

But here’s the thing… Housebuilders do not need rising house prices in order to make profits. When house prices cool, land prices also cool, and profit margins don’t need to suffer too much.

In fact, that was behind my bullishness on housebuilders back in the early 2000s. House prices were stagnating, and investors deserted housebuilders in their masses. But those canny companies had plenty of cash and were buying up building land at knock-down prices — and for me, that was a sure-fire sign of the boom that was to come.

Let’s get back to Crest Nicholson and its share price valuation. EPS is expected to drop 2% this year, but pick up 8% in 2019.  And dividends are expected to yield around the 8% level this year and next, which is a yield almost to die for. The shares are on a forward P/E of an incomprehensibly low 6.5.

The housebuilding sector is volatile, but I see that as irrationally down to short-term investors. Those of us who know better can do well from our long-term view.

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This edge is the group’s focus on the increasingly-popular plus-size segment. While plus-size clothing isn’t unique to N Brown, has established itself as one of the leaders in the segment. 

What’s more, the company has built its operations on a digital base, so unlike other retailers such as Debenhams, which has tremendous rent and rates obligations to meet, N Brown is better placed to succeed in a digital world. 

Online retailer 

During the last financial year, N Brown’s physical stores only generated £15m of sales, or 2% of overall group revenue. And now management is planning to shutter the 20 high street stores the enterprise does operate due to “very disappointing footfall.” The cost estimate for closing these outlets is £18m to £22m. 

Away from the high street, the group’s brands, including Simply Be and Jacamo, are still performing well. For the firm’s fiscal first quarter to June 2, total revenues rose 0.4% with online sales rising 3%. The company also benefitted from an increase in demand from consumers for financial services. Its financial services arm that lets customers borrow to finance purchases reported revenue growth of 9%. 

City analysts believe N Brown’s internet-focused business model means that the group is well placed to continue to grow earnings. Growth of 5.6% is expected for fiscal 2019 and 4.7% for 2020. The dividend is expected to tick higher from 14.2p to 14.4p by 2020, giving investors an 8% dividend yield. And as well as this high single-digit yield, the stock is also trading at a bargain basement forward P/E of 7.8 — a rare situation where the yield is higher than the valuation. 

Sector outperformance 

Regional REIT (LSE: RGL) is another 8% yielder that the market seems to be overlooking. Like N Brown, shares in Regional have come under pressure recently due to retail sector woes. Falling profits on the high street are forcing landlords to accept lower rents on commercial property portfolios. However, so far Regional seems to be avoiding the worst of the decline. At the end of March, the group’s occupancy rate was 85.7% versus 85% at 31 December 2017. 

It seems the company’s focus on offices is helping it navigate volatility in the commercial property market. At the end of March, offices accounted for 67% of the portfolio, and management is making the most of the market weakness to snap up more properties on attractive terms. Between the 29 and 31 of March, management inked two sizeable acquisitions, with a net initial yield of more than 8%. 

Regional’s active portfolio management and continued high levels of occupancy suggest the company’s dividend of 8.1p per share is here to stay. At current prices, the distribution is equal to a market-beating dividend yield of 8.5%. With this level of income on offer, it’s no surprise star fund manager Neil Woodford owns a significant stake. 

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

However, despite this impressive performance, pre-tax profit declined to £99m for the six-month period, down from the year-ago figure of £121.5m due to a fall in seed capital gains and foreign exchange movements.

Commenting on the performance, CEO Mark Coombs said: “As Ashmore has generated attractive returns for clients over the past year, leading to strong inflows, it has also delivered positive operating leverage for shareholders, with growth in operating revenues and a reduction in adjusted operating costs leading to an increase in the adjusted EBITDA margin from 66% to 67%.” 

Out of Ashmore’s control

Despite Coombs’ optimism, I’m not as positive on the outlook for Ashmore as its CEO. Over the past five years, the company has struggled to win over investors. Even though the firm manages some of the world’s best performing emerging market investment funds, investors have been wary of its offering due to the underperformance of emerging markets in general when compared to developed equities. 

What’s more, the entire active management investment model is under threat around the world as investors wake up to the fact that excessive fees can cripple investment performance. Low-cost passive investment funds are replacing these instruments instead. 

This trend can be seen clearly in Ashmore’s earnings and sales. Over the past five years, revenue has declined by around 5% per annum as net profit has stagnated thanks to cost-cutting efforts. These problems have weighed on both the company’s shares and dividend. While the shares currently support a dividend yield of 4.1%, over the past five years the payout has hardly budged, and City analysts do not expect this to change any time soon. Also, the stock looks relatively expensive trading at a forward P/E of 19.2. 

A better dividend 

Considering the above, I believe that online clothing retailer N Brown (LSE: BWNG) might be a better buy. Unlike Ashmore, shares in N Brown are cheap, trading at a forward P/E of only 8.7 and the stock supports a market-beating dividend yield of 7.1%. That being said, the stock is cheap for a reason. 

At the end of January, the firm announced that its gross margin forecast for the full year would be below expectations as it spends heavily on promotions to drive sales. These promotions will crimp profit margins, but they are already having a positive impact on revenue. 

For the third quarter, overall sales grew by 3.2%. And for the year, analysts are not expecting a terrible performance from the firm. A net profit of £62m has been pencilled in, which is below 2012’s record figure of £81m, but above 2017’s £44.3m. It looks as if the market is ignoring this fact, and N Brown’s low valuation leaves plenty of scope for a re-rating higher. 

With this being the case, I believe that the company can meet its current dividend obligations, which makes it a highly attractive income and value play for investors.

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Soft drinks, hard profits

The £702m soft drinks maker’s interim results for the half year ended 30 June 2017 showed revenues up 12.4% to £63.5m over the six months to 30 June, with pre-tax profit rising 6.8% to £12.7m. Domestic revenue rose 6.7% to £47.5m with flagship brand Vimto – yay! – posting a sales increase of 10% within the UK.

Nichols sells still and carbonate beverages in more than 85 countries, with the iconic Vimto brand particularly popular in the Middle East and Africa, while other brands in its portfolio include Feel Good, Starslush, Levi Roots and Sunkist (more nostalgia there). International revenue totalled £16m, up 33.5% on last year’s £12m, with 30.9% growth in Africa and 19.8% in the Middle East.

Vim and vigour

Non-executive chairman John Nichols hailed another strong performance in the first half of the year. “Our sales momentum, which continues to outperform the UK market, coupled with successful management of input costs has delivered solid profit growth.” He also warned that market conditions will remain challenging during the second half, although the firm’s clear strategy, strong brands and diversified business model should deliver full-year results in line with expectations.

Nichols has a market cap of £695m and its share price has soared 30% in the last 12 months, 175% over five years. It is flat after today’s results, which contained no surprises either way, but this all points to a steady, growing business. Perhaps the biggest concern is that the weaker pound has pushed up input costs, but is Brexit so bad that people cannot afford fizzy drinks in this country?

Bubbling under

That said, five years of double-digit earnings per share (EPS) growth are set to shrink to 7% in 2017, and 5% thereafter. This is a worry, with the stock trading at a toppy forecast valuation of 26.4 times earnings. Forecast revenue growth is relatively slow, with 2016’s £117.35m expected to hit £123.44m this year then £127.6m in 2017. Nichols may not be quite so fizzy in future.

Fashion fightback

Clothing retailer Brown (N) Group (LSE: BWNG) is also getting into its stride with its share price up 63% over the past 12 months. The FTSE 250-listed firm has spiked since June’s Q1 results showed group revenue up 5.6% thanks to brands Simply Be, where sales rose 20.5%, and JD Williams, up 12.7%. 

Product revenue rose 10.2%, driven by a strong performance from womenswear. It has also put in a doughty online performance, where revenues grew 16%. Chief executive Angela Spindler, who is focusing on driving financial returns across the business, is shuttering five lossmaking stores due to weak footfall.

This £850m company needs some tough love, given that EPS have fallen for five successive years, with a sixth pencilled in for 2018, another drop of 5%. There is hope on that front with a forecast 5% EPS rise in 2019, when the yield should hit 4.7%. Its current valuation of 12.9 times earnings adds to the feelgood factor.

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For the fiscal year ending 28 February 2018, analysts are expecting the company to report earnings per share of 21.4p, down 6% year-on-year on a pre-tax profit of £75.5m.

Improving outlook 

N Brown’s shares jumped after yesterday’s update because it confirmed that the company’s recovery is starting to gain traction. From their peak in 2014, the shares fell 71% to 180p during June 2016 as investors fled N Brown fearing for the company’s future. However, over the past 12 months, shares in the retailer have risen 30% thanks to efforts by management to reposition the business and assure shareholders that all is not lost.

And so far, management has been able to maintain the company’s dividend payout, which has remained at 14.2p per share for four years.

City analysts expect the payout to stay at this level for the next two years, giving shareholders a prospective dividend yield of 5.2%, but N Brown has a hidden secret that could force the company to cut its payout. 

Underlying problems 

At first glance, it looks as if N Brown’s dividend is secure. The per share payout is covered 1.5 times by earnings, and on a cash basis, the total value of money paid out via dividends amounted to £40.2m for the last fiscal year, which was covered twice by free cash flow.

Nonetheless, N Brown’s most lucrative business line is its financial services arm, which offers credit to customers shopping on its sites and stores. For the fiscal year to February 25, 2017, this financial services division produced £261m in revenue compared to £627m for retail sales. Financial services gross profit for the period was just under £150m compared to gross profit of £350m for retail sales.

The financial services arm has already come under scrutiny from the FCA due to the high-interest rates and other charges levied on customers. But as shown above, the group depends on this revenue to help it remain profitable. 

With concerns growing about the level of consumer indebtedness across the UK, and the fragile state of the UK consumer, N Brown might be heading towards stormy waters. For the past two years, the company has booked a bad debt charge of around £110m, a high figure and one that’s more likely to rise than fall in the years ahead. Without this charge, the financial services gross profit margin would be over 95%, which shows just how reliant the company has become on income from this division.

The bottom line 

So overall, with a dividend yield of 5.2% at the time of writing, shares in N Brown might look like an attractive dividend stock, but with such a broad exposure to financial services, the dividend might not be as safe as it initially seems. There could be better buys out there.

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Shares in N Brown Group (LSE: BWNG) have lost 65% of their value since their peak in February 2014, and a look at the firm’s declining earnings per share since 2012 makes that look like a reasonable market reaction — or does it?

While EPS has fallen by 17% over that time, the much bigger share price fall has dropped the P/E to only around nine, and forecasts suggest the earnings fall is bottoming out. So what’s behind it all?

N Brown is a home shopping retailer, operating a number of brands including JD Williams, Jacamo and Simply Be — essentially catalogue shopping, and targeted mainly at women aged 30 and above. Catalogue shopping is declining in popularity as folk switch more to the internet to buy their fashionable rags — why settle for one photo in a heavy (and quickly out of date) paper book when you can see multiple views together with video footage?

But the company is increasingly moving towards online retailing too. It’s just been a bit tardy doing so, but it clearly already has the warehousing and distribution systems in place. 

Results for 2016 are due on 27 April, and N Brown’s January trading statement looked good to me, showing a 4.1% rise in third-quarter revenue, with 77% of new customer demand generated online. Chief executive Angela Spindler told us that “All key brands and categories grew in the period“, after some had declined in the first half.

The dividend has been maintained through the tough patch, and forecasts suggest a steady yield of around 6.7%. Even being pessimistic, that leaves room for a cut while still providing a good payout.

At today’s 209p share price, I’m seeing a bargain.

Blue sky

My second choice, PureTech Health (LSE: PRTC), is a very different prospect, and it’s not for those who don’t like a bit of risk. In short, it’s a biopharmaceutical research firm that is not making any profits yet, and is not expected to do so in the next couple of years. So we can forget all the usual fundamental measures like earnings, dividends and ratios, as they’re all negative, zero or “n/a”.

But the company has just announced a licensing and equity agreement with US giant Novartis, “to initially focus on aging-related disorders“. And a Phase 2b clinical study of something that sounds very clever to me is expected to start in 2017 — it will target “diseases related to immunosenescence, an age-related decline in immune function“, they say.

We’ve also seen a steady stream of positive results from various other trials coming through in recent months, in cooperation with a number of other pharmaceuticals firms including Pfizer. In fact, at the interim stage, PureTech spoke of a pipeline of more than 20 clinical studies in progress.

And although the company recorded an adjusted loss of $26.92m, it was sitting on consolidated cash reserves of $297.4m. During the first half of 2016, the group raised $83m, with $50m coming from Vedanta Biosciences and a further $30 million from Akili — so there appears to be plenty of serious outside interest here.

Full-year results should be with us on 6 April, and the financials are likely to take a back seat to news on pipeline progress. At this stage, I’m really starting to think PureTech is looking like an attractive, if very uncertain, investment.

The post 2 FTSE SmallCap stocks I’d buy in April appeared first on The Motley Fool UK.

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Alan Oscroft has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.