WATCH: Stock Pick — AB Inbev

In this time of festive cheer, Craig Pheiffer from Absa Stockbrokers and Portfolio Management chose Anheuser-Busch Inbev as his stock pick of the day.

The company took on a huge amount of debt when it bought out SABMiller — $108bn. Net debt vs ebitda is at 4.9 times, which is chiefly why AB Inbev cut its dividend recently.

But Pheiffer says that the company has good cashflows and margins, and after a few years it should get that ratio down from 4.9 to 2.