Jonathan Fisher from PSG Wealth Sandton chose Discovery as his stock pick of the day and Drikus Combrinck from Capicraft chose Caterpillar. Fisher said: “Discovery is trading at 1.39 times embedded value, which is a lot higher than its peers. The reason is that historically they have grown at a much faster rate than the peers and their profitability of new businesses gathered and grown has been very good.” Combrinck said: “Caterpillar is sitting at an 11 PE [price-earnings ratio], which for a company that has cyclical end markets and the earnings base is really high at the moment. Its 2018 earnings came in fairly high.”
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