RELEASES FAMILY STOCK PICKS
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.