WATCH: Stock Picks — Naspers and Diageo
Jonathan Fisher from PSG Wealth Sandton and Nesan Nair from Sasfin Securities discuss their stock picks with Business Day TV
Jonathan Fisher from PSG Wealth Sandton chose Naspers as his stock pick of the day and Nesan Nair from Sasfin Securities chose Diageo.
Fisher said: "I'm going for the big elephant in the room with a market cap of around R1.5-trillion: Naspers. They came out with numbers not too long ago and they grew their headline earnings per share by around 20%. They are on a price-earnings ratio of 29 times, so it's just staying on the treadmill keeping up with the earnings. I do believe and our ‘house view’ is that this new listing in Amsterdam is going to unlock value for the company for share holders.”
Nair said: "I'm going for a British company — there is a lot happening in the UK apart from Brexit. The company I'm going for is called Diageo: they make Johnnie Walker, Smirnoff Vodka and Guinness, to name a few. If you look at the current state of the company, they are growing their organic volumes, which means that people are consuming more of their brands.
“They have great pricing power, good exposure to the US and they are probably one of the few international global companies that is EU-based that has got great access to the Indian market, which is the fastest-growing spirits market in the world. Over the next 5-10 years I'm expecting Diageo to do very well.”
Jonathan Fisher from PSG Wealth Sandton chose Naspers as his stock pick of the day and Nesan Nair from Sasfin Securities chose Diageo