Drikus Combrinck from Capicraft chose Lloyds — TSB as his stock pick of the day. Even if they get a hard Brexit, a lot of the bad news is already priced in and the pound to the dollar is down about 18% since the shock announcement of the Brexit vote. Lloyds is a quality operator that covers 25% of the market, most of it is small and medium enterprises so it depends on the UK economy. That part of the UK economy is actually done quite well, even under these circumstances and Lloyds has kept growing its earnings. They’re paying an average of 6% dividend and they’re buying back shares at about 2%-3% so you’re looking at a 9% shared holder yield. Joseph Busha from JM Busha Investments chose the JSE top 40 index as his stock pick of the day. For 2019 it is trading at around a 9%-11% discount to fair value which we haven’t seen in a while. Obviously some of the sectors are not doing as well but broadly it’s a safe bet until the market has settled. We are in an election year in SA and it w...
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