Stock Watch
WATCH: Stock Picks — Cameco and International Consolidated Airlines
Drikus Combrinck from Capicraft chose Cameco Corporation as his stock pick of the day. Cameco is one of the worlds largest uranium producers and traders — so big that they manage the market. They have a competitive advantage in that they have mines with a long life and multiple brownfields projects that have started up again in the uranium market, as most of south and east Asia are spending a lot of money on nuclear. Uranium demand is set to increase about 40% over the next five years.
Jean Pierre Verster from Fairtree Capital chose International Consolidated Airlines Group (IAG) as his stock pick of the day, effectively “British Airways” in Iberia. It’s a more long-haul type stock with more exposure in Europe, he said. There has been a relatively stable lid on fuel prices and they have hedged those. The cost of pilots has also gone through a round of negotiations and hopefully now they can lift usage of seats through that by carefully managing the revenue versus the costs, h...
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