WATCH: Stock picks — Discovery and Remgro
Graeme Kӧrner from Kӧrner Perspective chose Discovery as his stock pick of the day, and independent analyst Frans de Klerk chose Remgro.
Kӧrner said Discovery had made a nice comeback despite all the fear around China. He said the business model was really kicking into gear and the company had spent a lot of money on the bank.
“One should take the pullback that you get in companies like this. It’s a middle-of-the-road company that a growth-oriented investor should have in their portfolio,” said Kӧrner.
He said that looking at their multiples the stock probably did not make sense to buy, but there was a lot of earnings momentum in its business.
“Discovery is a good buy. It’s not a dripping roast, but you will probably never get Discovery at a bargain basement price,” says Kӧrner.
De Klerk said Remgro was trading on a price-to-earnings ratio of around six and a dividend of two, but looking at it in a technical manner it was close to a strong support line. His suggestion for the viewer is to buy it as close as possible to R184.31.
“This is only for a bounce and we are set to see a much lower market in the months to come,” said de Klerk.
Graeme Kӧrner from Kӧrner Perspective and independent analyst Frans de Klerk spoke to Business Day TV about their picks of the day.