5 Jul
2021

5 UK shares I’d buy and 5 I’d avoid in 2021

first_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. G A Chester has no position in any of the shares mentioned. The Motley Fool UK has recommended Sage Group and Synthomer. 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. Image source: Getty Images. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img G A Chester | Friday, 8th January, 2021 Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. 5 UK shares I’d buy and 5 I’d avoid in 2021 The stock market made an impressive recovery last year, following the spring crash. And with UK shares also starting 2021 strongly, sentiment is clearly improving.They say a rising tide lifts all boats. But I don’t see this as a reason to be complacent about the quality of the businesses we invest in. With this in mind, here are five UK shares I’d be happy to buy and five I’d avoid.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Contrasting technology [email protected] Capital has negligible revenue, but a market capitalisation of £197m. With directors offloading shares — and the company’s nascent “Inventory Monetisation©” fintech platform (using “innovative legal schemes”) unproven in practice — I’m avoiding the stock.But I’d gladly buy shares in £6.3bn-cap Sage. It’s the global leader in technology that helps small- and medium-sized businesses manage their supply chains, inventory, invoicing, payments, cash flows, tax, and so on. Good profit margins and cash conversion point to a high-quality business.Silver screen UK sharesInternational cinema group Cineworld had a weak balance sheet even before the pandemic. This was due to a risky debt-fuelled acquisition strategy. The £930m-cap firm last reported net debt of an eye-watering $8.2bn. I’m avoiding it, because I think a painful financial restructuring is inevitable.But I reckon smaller UK chain Everyman is very buyable. It had a stronger balance sheet pre-pandemic, and reinforced it with an early equity fundraising. The £93m-cap company last reported net debt of £82.7m. Post-pandemic, I think it can resume its prudently-paced growth.Forget jam tomorrowThe £95m market valuation of Versarien seems to rest on hopes for its graphene business. However, a multitude of collaborations announced in recent years have produced very little revenue (£142,000 last year). It looks a perennial jam-tomorrow stock to me, so I’m avoiding it.However, I’d happily buy £1.9bn-cap stock Synthomer. This speciality chemicals group made a £100m profit last year on £1.5bn revenue. Its 2020 performance is expected to be ahead of that, and I think it has solid longer-term growth prospects too.UK shares in far-flung placesEurasia Mining is a Russian miner of platinum group metals (PGMs). Last year, this £1.1m revenue earner said it was entering a formal sale process. The share price has gone bonkers, and the company’s valuation has risen to a mind-boggling £938m. I’m avoiding the stock because I see little upside. Further, I reckon the shares could crash if no bid materialises.Meanwhile, £251m-cap Sylvania Platinum generated $114m of revenue last year. It operates in the PGM-rich Bushveld Igneous Complex in South Africa, and pays generous dividends. The shares have risen strongly since I first tipped it in 2018, but I still see the stock as very buyable today.Another tale of two contrasting UK sharesOnline travel ticketing platform Trainline was burning cash even before the pandemic. I think we’ll see lower passenger volumes, due to more homeworking post-pandemic. I’m avoiding the stock as there’s no visibility on when, or if, it’ll generate enough free cash flow to justify a £2.1bn valuation.By contrast. I’d be happy to buy fast-growing, cash-generative Gamma Communications. It’s profiting from the rise in unified communications as a service. I reckon its premium valuation — a market-cap of £1.5bn versus revenue of £329m last year — is justified by the size of its growth opportunity. 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