WATCH: Stock picks — Sasol and MMI Holdings
Graeme Körner from Körner Perspective chose Sasol as his stock pick of the day, while Gerbrand Smit from NEFG Fund Managers chose MMI Holdings.
Körner said, taking a rolling two-year view, Sasol was a good choice, and there was also “nice optionality” within the company.
“If oil can hold at $60 a barrel and the rand can continue to hover around R12/$, there will be huge returns if and when the Lake Charles Chemicals Project (LCCP) in Louisiana comes online,” he said.
Smit said it was difficult to get a margin of safety within the stock market. On an embedded value basis — the way insurance holders should be valued, he said — MMI was the cheapest on a discount of 25%.
Graeme Körner from Körner Perspective talks to Business Day TV about Sasol, while Gerbrand Smit from NEFG Fund Managers discusses MMI Holdings
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