Picture: 123RF/Thananit Suntiviriyanon
Picture: 123RF/Thananit Suntiviriyanon

Graeme Körner from Körner Perspective chose African Rainbow Capital as his stock pick of the day and Ashraf Mohamed from Arqaam Capital chose Blue Label Telecoms.

Körner said: “I’m being cautious and if you can buy investment companies at 30% plus discounts to NAV [net asset values] with underlying operating entities that could perform in a more favourable environment and African Rainbow has some businesses in there that are very disruptive and I think they have got some real-world assets as well.”

Mohamed said: “Mine is a short on Blue Label Telecoms, their share prices ran very strongly, to me there is risk in terms of the maturity of the mobile industry so I see limited to negative growth for them in SA. Nigeria hasn’t been such a great environment either and then, of course, you have the Cell C issue and Cell C will continue making losses, so at the end of the day I think they’re going to come out, and they’re either going to need to do a rights issue or they’re going to have to merge with a third party but they are under pressure in my view.”

Graeme Körner from Körner Perspective and Ashraf Mohamed from Arqaam Capital talk to Business Day TV

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