Picture: 123RF/THANANIT SUNTIVIRIYANON
Picture: 123RF/THANANIT SUNTIVIRIYANON

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.”

Jonathan Fisher from PSG Wealth Sandton and Drikus Combrinck from Capicraft talk to Business Day TV

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