With the FTSE 100 near hitting recent report highs, some traders are jubilant. Nonetheless, based mostly on company-specific elements, I’m staying away from some UK shares. Listed here are two I’m avoiding proper now, together with the reasoning behind my view.

Struggling for takeoff

The primary is Wizz Air (LSE:WIZZ). The inventory is down 52% up to now yr and lately hit 52-week lows. A giant chunk of this loss got here in early June, when full-year outcomes confirmed a disappointing efficiency and a moderately bleak outlook.

In equity, the dangerous outcomes had been considerably anticipated after the airline issued two revenue warnings in beneath six months. On every event, it warned of continued losses and uncertainty resulting in share price drops. The outcomes present a reported working revenue drop of 61.7% yr on yr to €167m, lacking analyst expectations.

Web debt rose by 3.5% to nearly €5bn, making it one of many trade’s most closely leveraged airways. Wizz suspended its ahead steering as a consequence of operational uncertainty and geopolitical points, which was one other issue that actually eroded my confidence in contemplating the corporate proper now.

In fact, this could possibly be a superb alternative to purchase the inventory at an affordable price. Money ranges are excessive, and so the corporate can possible survive within the close to time period. If the administration crew can give attention to reducing prices and streamlining operations, it may emerge on the opposite aspect in a stronger place.

Missing a wow issue

One other firm that I believe is struggling is Ocado Group (LSE:OCDO).The inventory is down 26% within the final yr, and at 236p, is only some pence off the 52-week lows.

A part of Ocado’s long-term development case includes licensing its automated warehouse (CFC) resolution to companions. But, progress on this space has stalled lately, with rollouts not progressing on the tempo many had been anticipating.

One other downside stays the shortage of profitability at a gaggle stage. It reported a pre-tax lack of lots of of tens of millions final yr, the identical because the yr prior. I do know that development shares typically are loss-making for some time as they scale up operations. But Ocado is definitely large enough to be worthwhile if it pursues the right technique. I simply don’t see how the corporate goes to interrupt even anytime quickly, so I’d moderately look to allocate my cash elsewhere.

The corporate is investing some huge cash in AI, and this might actually assist it streamline prices and turn out to be extra environment friendly. It may additionally assist advance revolutionary concepts to a stage the place they’re commercially viable.

The fantastic thing about investing is that some traders would possibly see the 2 shares as engaging worth purchases. However from the place I stand, I can see a lot better shares elsewhere.