Andile Buthelezi from Sentio Capital chose Anglo American as his stock pick of the day.

Today I'm going with Anglo-American — it's a diversified mining company exposed to PGMs, iron ore, copper and diamond. Diamond is a concern right now, the diamond business is not doing too well, but the beauty of having a diversified portfolio means that there are other levers that they can pull on in other regions that can help the group as a whole continue to grow.

“I like the numbers that these guys are producing: they are generating high ebitda margins, generating high returns (the capital ratios), they are generating a lot of cash which they have committed to returning to shareholders.”

Buthelezi continued: “They've got a very clear different policy and they also recently, at the last results, announced a share buyback so, all good news — I think, yes, concerns about global growth do affect them, but I think the share price has fallen quite a bit to justify having a look at it again.”

Or listen to the full audio:

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.