Rowan Williams from Nitrogen Fund Managers chose Allied Electronics as his stock pick of the day, and Nick Kunze from Bridge Fund Managers chose Aspen Pharmacare. Williams said that Allied Electronics might have a bad reputation, but one should look to the future and the company’s potential when investing. “It is the end of an era and the founder and patriarch of the company is stepping away and handing over the baton to new leadership, which is reshaping it into an ICT services-focused business, less capital intensive, high return on capital, with a couple of nice niches that are also growing along with their presence in SA and the UK.” Kunze said Aspen had a large market cap, with a trading multiple of around 19. He said there had been some recent corporate action, with a possible plan to spin off of its milk business.
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