Picture: THINKSTOCK
Picture: THINKSTOCK

Joseph Busha from JM Busha Investments chose Anglo American as his stock pick of the day and Gerbrand Smit from NeFG Fund Management chose Sasol.

Busha said: “Anglo American has been hammered as resource stock and they certainly have their own issues, they had to settle their class lawsuit here in SA and Zambia has also issued one to say that they need to be able to pay. So from a momentum perspective, you might be able to get it back again, possibly in the short term.”

Smit said: “I’m going against the stream here, so it’s not for the widows and orphans at the moment, just if you do a matchbook calculation on what’s Sasol was worth (the old businesses) if chemical process do recover a little bit, we used to say that there is about R40 or R50 a share in it, at a 10 price-earnings ratio it should be R500 a share.”

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