WATCH: Stock picks — Richemont and Sasol
Greg Katzenellenbogen from Sanlam Private Wealth chose Richemont as his stock pick of the day, while Joseph Busha from JM Busha Investment Group favoured shorting Sasol.
Katzenellenbogen said: “The bottom line is that the share has come off significantly — more than 30% — and this offers an opportunity as the market has not taken everything into account. Richemont still makes a lot of money in their jewellery divisions and they have very high margins, probably the best in terms of global jewellery suppliers. They have bought back a lot of their high-end watches to avoid flooding the market and that programme is due to come to an end now."
Busha said: “The coalition between the Sasol share price and Brent crude prices is quite significant, the share price was last trading at a 12% premium to its fair value.”
Greg Katzenellenbogen from Sanlam Private Wealth and Joseph Busha from JM Busha Investment Group talk to Business Day TV
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