Picture: THINKSTOCK
Picture: THINKSTOCK

Chantal Marx from FNB Securities chose Poineer Foods as her stock pick of the day and Gerbrand Smit from NeFG Fund Management chose Aspen. 

Marx said that the shares of food producers have been under pressure.

“Soft commodity prices should make a comeback in the first quarter of 2019 and both Tiger Brands and Pioneer Foods will benefit from that being really strong in the bread and maize space. Pioneer Foods have priced in all their ‘bad news’ since they’ve had a torrid last two years, so the base is probably a lot more favourable than the likes of Tiger Brands, and you don’t have to compete with the likes of listeriosis.”

Smit said that despite its recent disappointing results Aspen has a more than 20-year track record showing growth.

“Nothing has changed, they had difficult headwinds from first world countries in developed markets and missed one or two manufacturing contracts but it remains a quality business. For the first time it looks cheap enough for us to buy.”

Chantal Marx from FNB Securities talks to Business Day TV about Poineer Foods and Gerbrand Smit from NeFG Fund Management discusses Aspen

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