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Sunday share tips: Artisanal Spirit Co., CVS Group

The Financial Mail on Sunday’s Midas column recommended that its readers but shares of Artisanal Spirits Co., judging its lacklustre debut on the junior market to ne undeserved.
“This reflects neither recent performance nor future prospects, and the stock should recover as boss David Ridley delivers against his strategy,” the tipster said.

The company traces its origins back to 1983, when Hills and some friends formed the Scotch Malt Whisky Society so they could buy and enjoy individual casks of whisky.

That was followed in June by its listing on AIM under its new name, the Artisanal Spirits Co., at 112.0p a share.

But whereas in the 1980s blended whisky was the norm, premium – or single cask – whisky was now back in vogue.

The cost of becoming member is £65 with most members purchasing at least seven bottles per year at an average price of £75 each.

However, some ultra-special examples can go for as much as £1,500 a bottle.

“Enthusiasm for premium spirits is increasing, Ridley has plenty of plans for growth and the company is an expert in e-commerce too.

“At 83p, the shares are a buy – investors gain half-price membership to the Society too, a type of dividend in kind.”

The Sunday Times’s Sabah Meddings recommended readers ‘buy’ shares of CVS Group to tap into the pandemic-induced boom in pet ownership.

During the preceding week, private equity giant CVC did just that, acquiring a majority stake in the company’s rival, vet chain Medivet, for $1bn.

Trading has been brisk with CVS Group posting a 17.4% jump in like-for-like sales over the 12 months to July.

Consensus is now for full-year sales of $502.3m and the company has a 9.0% share of its market.

A test in coming months will be whether the trend towards pet owners spending ever larger sums on their animal companions slows as restrictions ease.

Nevertheless, CVS is expected to continue snapping up independent practices, adding them to the 500 that it already has across the UK, Netherlands and Ireland.

The company also owns laboratories, crematoriums and Animed Direct, its online pharmacy.

Furthermore, unlike its private equity-owned peers, CVS has no debt on its books.

“If it continues to perform, this is one to buy.”

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