WATCH: Stock picks — Zambezi Plat and Growthpoint
Gerbrand Smit from NeFG Fund Management chose Zambezi Platinum preference shares as his stock pick of the day and Wayne McCurrie from FNB Wealth and Investments chose Growthpoint Properties.
Smit said the only risk with Zambezi is Northam, although it has a strong balance sheet.
“With this stock you’re earning prime plus 3% per annum. It’s a roll-up structure which allows you to work it out on a spreadsheet and you will know what the price will be. The price is decent for us in the current market as you are earning inflation plus 7%.”
McCurrie said listed property stocks have not been this cheap in about 15 years.
“The yield is at or above the long bond yield and at a discount to NAV [net asset value] and is truly good value territory for the long term. The only activity in the property market at the moment is the building of apartments, which will stay around for a while.”
Gerbrand Smit from NeFG Fund Management and Wayne McCurrie from FNB Wealth and Investments talks to Business Day TV