Nick Kunze from Sanlam Private Wealth chose Investec as his stock pick of the day and Jonathan Fisher from PSG Wealth Sandton chose Mondi. Kunze said Investec Plc is not an expensive share, “as it is trading at R90 a share with a forward price-earnings ratio of nine. When the story first broke of them spinning off the asset management business the share popped up to R114-R115 per share. It is back now on quite a nice level. We have a fair value with a nice dividend yield of around 5%. And also, you have the importance that it is being held back a bit by the Brexit decisions. We like Investec and it is not too demanding at the current levels.” Fisher said Mondi Plc is a paper and packaging company that “pretty much controls its whole value chain from owning and managing forests all the way to making pulp and turning that into packaging products for consumer and industrial industries, and 60%-70% of their business is now offshore. We think that this stock is cheap and its trading on a...
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