I’m constantly attempting to find the very best UK shares to assist bolster my holdings.

Nevertheless, two shares I personally don’t just like the look of are Ocado (LSE: OCDO), and Burberry (LSE: BRBY). Though I’m not planning on shopping for shares anytime quickly, I’ll proceed to keep watch over developments.

Let me clarify my reasoning.

Ocado

Maybe greatest generally known as one of many largest pure on-line grocers on the earth, there’s extra to Ocado as a enterprise. It additionally possesses a expertise arm the place it gives an internet platform for grocery fulfilment to promote to different corporations to assist operations run extra effectively.

The Ocado share price has been on a downward spiral for a while, and the previous 12 months is not any totally different. The shares are down 61% on this timeframe from 878p right now final 12 months, to present ranges of 336p.

My resolution to keep away from the shares stems from just a few key details. Firstly, the enterprise continues to publish constant losses. In truth, it hasn’t turned a revenue but, which is a giant pink flag for me. Subsequent, it continues to plunder money hand-over-fist into the enterprise to assist flip round its fortunes. This expenditure isn’t splendid from an investor perspective, though I’m aware that normally you must spend cash to generate profits. Lastly, the grocery sector is extraordinarily aggressive, and there are sometimes razor-thin margins concerned.

From a bullish view, there’s an argument that Ocado shares might be a long-term restoration play. For instance, latest outcomes present revenues are slowly edging the proper method, and losses are shrinking. Plus, the tech facet of the enterprise does doubtlessly possess thrilling progress alternatives. At current, 13 of the world’s largest grocers have signed up to the platform.

Nevertheless, there are too many pink flags that imply the cons outweigh the professionals for me right now.

Burberry

I’ll be the primary to confess I really like Burberry objects, particularly the well-known chequered print it’s develop into well-known for.

Nevertheless, the shares have had a horrible time of issues in latest months. They’re down a mammoth 70% over a 12-month interval from 2,200p at this level final 12 months, to present ranges of 650p.

Financial turbulence — together with larger rates of interest, inflation, and geopolitical tensions throughout the planet — have created a cocktail for catastrophe. The demand for luxurious items has been impacted.

Attributable to these points, Burberry’s efficiency has been harm badly. Gross sales have been dropping sharply, and its key markets, comparable to China, have been in turmoil. For instance, a Q1 report launched in July confirmed retailer gross sales dropped 21% in comparison with the identical interval final 12 months. Persevering with financial points in China might imply issues will likely be bumpy for some time.

Much like Ocado, I can’t assist considering there’s a restoration play relating to Burberry shares, too. The shares commerce on a price-to-earnings ratio of just below 9. The historic common is far larger. If financial turbulence dissipates, earnings might bounce again.

Lastly, Burberry is shedding its FTSE 100 standing as a part of the latest reshuffle. Its elimination after a few years on the high desk is a big blow.

I’m going to maintain a detailed eye on Burberry shares, however proper now I’m not satisfied.