Stock picks
Jonathan Fisher from PSG Wealth Sandton Grayston chose MultiChoice
● “Not the most exciting one, but it’s a solid company. It’s a business with high margins, strong cash-flow generation and a strong balance sheet. There is a potential fine coming out of Nigeria so that is a big risk and might impact the business, but based on what we saw with MTN and behind-the-scenes negotiations with MTN, we think that the fine the Nigerians are looking at will be a lot less than what it actually comes out at.”
Jean Pierre Verster from Protea Capital Management chose Prosus
● “I do believe that Tencent is a good opportunity and if you buy it via Prosus you’re buying it at a discount. It’s not clear if the management team is going to spend as much time and attention on the value unlock at the Naspers level after the share swap. We need to wait and see what happens and how much acceptance there is, but you can see from their own personal incentives that more of the intention is going to be at Prosus. Other than Tencent, they’ve got some great other … companies.”
Chris Gilmour, independent analyst, chose Afrimat
● “It’s riding the wave of iron ore and although iron ore took a smack over the weekend — because again the Chinese are playing with the price, releasing strategic stockpiles into the market, [but] they can’t do that forever — so I think Afrimat again. It’s round about R60, it’s risen very nicely in recent weeks and months, but I think there’s a whole lot more in play.”