RE­LEASES FAM­ILY STOCK PICKS

Finweek English Edition - - INVESTMENT - WITH MANY IN­VESTORS QUERY­ING WHETHER THE CUR­RENT MAR­KET IS LOOK­ING EX­PEN­SIVE, IN­VESTORS ARE TURN­ING TO THEIR BRO­KERS FOR IN­SIGHTS. NED­BANK PRI­VATE WEALTH HAS IDEN­TI­FIED THE FOL­LOW­ING SHARES WOR­THY OF CON­SID­ER­A­TION AND THE REA­SONS WHY IT LIKES THE COM­PANIE

There are not many shares on the JSE that still of­fer value af­ter the strong run that we have seen over the past few years. Old Mu­tual of­fers the at­trac­tive com­bi­na­tion of a rea­son­able val­u­a­tion, or­ganic-growth prospects, an in­creas­ing div­i­dend pay­out ra­tio and cor­po­rate ac­tion po­ten­tial.

De­mand for man­aged ser­vices is boom­ing as cor­po­rates seek to re­duce costs and im­prove ef­fi­cien­cies in an in­creas­ingly com­pet­i­tive en­vi­ron­ment. In our view AdaptIT is well po­si­tioned to ben­e­fit from this trend.

While the com­pany had a trou­bled birth dur­ing the fi­nan­cial cri­sis, it has fi­nally reached steady-state pro­duc­tion, with the bulk of pro­duc­tion be­ing sup­plied to Eskom at favourable rates. Man­age­ment can now turn their at­ten­tion to the Ex­ceed ac­qui­si­tion, which will dou­ble the group’s pro­duc­tion of ther­mal coal once the main project is fully de­vel­oped by 2016. Keaton En­ergy is an ideal stock for a grow­ing boy who has a higher-risk pro­file.

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