Graeme Körner from Körner Perspective chose Absa as his stock pick of the day and Sekgabo Molelekoa from Umthombo Wealth chose Astral Foods. Körner said that “without a permanent CEO, Absa and other banks are said to be shrinking violets. We are taking a view that the elections will go according to plan and should get some of that pent up energy in the economy going. When you buy Absa, you’re buying a decent franchise that is free of the shackles of Barclays. You’re buying it on a sub-nine price-earnings ratio and a dividend yield of over 7%.” Molelekoa said: “You could argue that Astral posted peak margins last year, but we’ve been seeing that production numbers from a farming point of view are looking better than expected towards the end of 2019. Feed costs should also not accelerate as much as we thought, so even if you apply the same costs as you did in 2017 (before the peak margin) you will still come out with a good looking valuation.”
Or listen to the full audio:..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.