Joseph Busha from JM Busha chose Naspers as his stock pick of the day and Gerbrand Smit from NEFG Fund Management chose Fortress. Busha said Naspers has peaked at R4,000 per share “but they came down 6% and you will probably gain it back within the next six months. Tencent is still producing…. The net asset value is doing well and the price-earnings ratio is almost at its 10-year average…. Their price to book value is down about 30%, which gives an indication that Naspers in now fairly priced but with an upside potential.” Smit said that when Resilient shares were being badly beaten, “everyone was hitting the shares in that stable, but Fortress A was the one that was different”. He said: “Fortress has to stock options, A and B, what A guarantees is that you will get your income of last year plus the amount of what inflation was or at least 5%. Long-term investments will give you a 14% return from here onwards and, if capital does appreciate again, you will get some capital upside a...
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