Picture: ISTOCK
Picture: ISTOCK

Liston Meintjes from Nvest Securities chose Tongaat Hulett as his stock pick of the day.

He said the share slumped quite a bit on Friday after the company said it expected its headline loss for the six months to end-September to grow 113% due to poor market conditions.

“The stock has some unusual characteristics, particularly two things: that the world sugar price is not good at the moment and that they normally have tariff protection, but missed that because the government didn’t apply it.

“The other aspect to the business is the land sales that are also coming in, but only reflecting in the second half, which is not being published. So, when investors read the reports, it reflects badly as it does not show true results.”

Liston Meintjes from Nvest Securities talks to Business Day TV about Tongaat Hulett