WATCH: Stock picks — Coronation Fund and Barloworld
Joseph Busha from JM Busha Investments chose Barloworld as his stock pick of the day and Ashraf Mohamed from Arqaam Capital chose Coronation Fund Managers. Busha said: “In a tough economy Barloworld has done very well and looking at headline earnings per share [HEPS] they are all double digits and then if you include the discontinued operations, you are looking at about 35%. Your earnings momentum is going faster than your price momentum, which means there is an opportunity for growth.” Mohamed said: “Coronation certainly has picked a couple of the wrong stocks over the past 15 months, but we should be coming to the end of that road. The most recent disaster was Aspen and AUM [assets under management] started stabilising, net outflows have started turning into inflows so, in my view, it’s a stock that is nearing the bottom. But you have to take a six- to 12-month view on it and you’ll start seeing the turnaround in profit.”
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