WATCH: Stock Pick — Remgro and AB InBev
Steven Schultz from Momentum chose Remgro and AB InBev as his stock picks for the day
Steven Schultz from Momentum chose Remgro and AB InBev as his stock picks for the day.
"My stock pick is twofold. From the short-term stock pick just from pure trading, it's Remgro — we saw it rally today, evidence that the market doesn't sleep. It's up 6% but there is a 22% discount to net asset value so a little bit more left in that trail I think.
“Long term it's AB InBev. I picked it before but we saw a very aggressive sell-off of the counter in October. Largely a result of missing volumes, and expectations were a 0.8% percent growth in volumes. What they experienced was a 0.5% contraction, larger results of Asia and perhaps a lesser extent of the US.
“I do think that the sell off of 11% is definitely overdone. I think there's definitely value in the counter at present. It trades on a forward PE of 18 and of course it is a defence of stock with rand hedges,” Schultz said.
Steven Schultz from Momentum chose Remgro and AB InBev SA NV as his stock picks for the day
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