WATCH: Stock picks — Richemont and Tiger Brands
Greg Katzenellenbogen from Sanlam Private Wealth choose Richemont as his stock pick of the day and Deryck Janse van Rensburg from Anchor Securities chose Tiger Brands.
Katzenellenbogen said Richemont’s results were due to be released on Friday, and were expected to be positive, especially its North American watch sales.
The company recently acquired the Yoox Net-a-Porter shares and has a “big online digital programme going, so in the next couple of years it will be extremely beneficial for this stock”. he said
Janse van Rensburg said that Tiger Brands had come under immense pressure due to the listeriosis outbreak. “The long and short of it, is that you are sitting on a company that has a forward PE [price-earnings] multiple of 15. At the moment, the stock is cheap and a valuation-type pick and, with new management in place, this is a company that goes about cost saving in a way that brings greater operating margins, which in turns drops down to net profit.… The company is evolving to bring about better earnings looking forward,” he said.
Greg Katzenellenbogen from Sanlam Private Wealth talks to Business Day TV about Richemont and Anchor Securities’ Deryck Janse van Rensburg discusses Tiger Brands
OR LISTEN TO THE FULL SHOW: