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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