WATCH: Stock picks — Anglo American and AECI
Jonathan Fisher from PSG Wealth chose Anglo American as his stock pick of the day and Joseph Busha from JM Busha Investment Group chose AECI.
Fisher said Anglo American, which is trading at R321, has done well over the past two three years in cleaning up its business.
“The resource prices or the resources that it sells and procures have helped them and hopefully, should resource prices remain pretty stable, we will continue to see good cash flows and profitability coming through.”
Busha said AECI has 17 businesses, ranging from mining and chemicals, to water solutions, animal health and beverages.
“They also recently bought a company called Origin, although it’s a very small company based in California, this is where AECI wants to move into renewable energy chemicals. The stock is now trading at a 20% discount to fair value and went up to about R105 per share. Looking in terms of earnings momentum it is clearly ahead of price momentum, so based on that this is a good opportunity to buy AECI and get at least 10% on the upside.”
Jonathan Fisher from PSG Wealth talks to Business Day TV about Anglo American and Joseph Busha from JM Busha Investment Group discusses AECI
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