WATCH: Stock pick — Netcare
Robert Cameron from Thebe Stockbroking chose Netcare as his stock pick of the day.
“My stock pick is Netcare. It’s more a trading stock pick, and not a long-term hold. I think there are still a lot of headwinds in the SA hospital space, but at the moment there are some technical factors that have driven the Netcare share down sharply. First of all their CEO sold around R200m worth of shares and they are about to exit the top 40 index, so a lot of those tracker funds are having to sell off their holding in Netcare.
“Their financial results, however, that came out earlier this month was quite decent. Their dividend was up almost 7% and they increased their headline earnings slightly. It's not expensive and one should keep it for 10%-20% on the upside, get the dividend and then maybe just bank your profits."
Robert Cameron from Thebe Stockbroking talks to Business Day TV about his stock pick of the day
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