WATCH: Stock picks — Standard Bank and Humana
Gerbrand Smit from NEFG Fund Managers and Jean Pierre Verster from Protea Capital Management talk to Business Day TV
Gerbrand Smit from NEFG Fund Managers chose Standard Bank as his stock pick of the day and Jean Pierre Verster from Protea Capital Management chose Humana.
Smit said: “Standard Bank is trading at about a 9-9.5% PE [price-earnings] multiple for the full year’s earnings, which is in the long term cheap for them, probably 20% undervalued.”
Verster said: “Humana is a health insurer and they had a deal with Discovery. I’ve got a bit of a cold at the moment so it made me look at the health-care stocks and Humana is one of the big US health insurers.”
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