Gerbrand Smit from N-e-F-G Frund Managers chose Remgro as his stock pick of the day and Chantal Marx from FNB Wealth & Investments chose BAT.
Smit said: "I'm going for Remgro, it's holding company, I know they're out of favour for quite some time but it's sitting at a huge discount to what the NAV was and in the end of June. We are now in much higher markets and we know that some of the assets has actually grown considerably, especially FirstRand, RMI and some other investments, so I think at a 35% discount at June last year's valuation, you're going to see some better net asset value coming out with end of December numbers and you'll probably see some rewriting on the day. So, I think there's an easy 15% to 20% to be made on Remgro with not much risk.
Marx said:" I'm also going to punt an old punt, British American Tobacco. The stock still looks very very cheap, you've got an 8,5% dividend yield, so even if the share price doesn't go anywhere you still get compensated quite adequately for taking that position."
Gerbrand Smit from N-e-F-G Fund Managers chose Remgro as his stock pick of the day and Gary Booysen from Rand Swiss chose Rand/Dollar.
Smit said: "I'm going to go for Remgro again. I picked it at similar levels the last two times and I think markets are much higher than where it were June the 30th last year. We know what happened to markets, they certainly corrected from where they were then so and they already trading at a discount of more than 35 on those numbers. You're going to see higher net asset values coming out for the end of December in the next week or three and then I think you might see some re-rating of the stock."Booysen said: "
I'm just thinking about the currency play on the rand/dollar. I know we talked about the commodity super cycle, everyone thinks maybe that the currency is going to get stronger and I think a lot of that is priced in given the huge re-rating that we've seen over the last six months.
Wayne McCurrie from FNB Wealth & Investments chose CVS Health as his stock pick of the day and David Shapiro from Sasfin Securities chose L’Oreal.
McCurrie said: "I'm going with an American company called CVS Health, a hospital health group and they came out with their results on Tuesday. Slightly disappointing results but their outlook is very very good. They're forming some alliances and with people going online, they've hit the mark with healthcare at home. Their price earnings ratio looks relatively low."
Shapiro said: "I'm going for L'Oreal, they have very good skincare products and coming on the back of some very good numbers, I think stay at home people, the return of the Asian markets has been pushing up the demand for skincare - particularly online."
Independent Analyst Chris Gilmour chose Afrimat as his stock pick of the day and Joseph Busha from JM Busha Investments chose Kumba Iron ore.
Gilmour said: "I believe we're actually on the cusp of a commodity super cycle and I think iron ore is going to do as well as just about any of them, particularly with Chinese infrastructure demand. So, again for me it really is Afromat. The company and the shares are not, in my opinion reflecting the intrinsic worth of the underlying worth of the company."
Busha said: "I'll just go from a momentum perspective and possibly go for Kumba, I think they might just rise a little bit. They pay good dividends and they some legs."
Nick Kunze from Sanlam Private Wealth chose Northam Platinum as his stock pick and Meryl Pick from Old Mutual Investments chose WBHO.
Kunze said: "I'm sticking with the platinum mining theme, this week we had BHP Billiton, today Sibanye and so I'm going with Northam Platinum. We've got quite a few coming out this week and I think given what we've seen so far, Northam are not going to disappoint. I like the whole story, it's around R200 a share at the moment."
Pick said: "I'm going to go contrarian was something that's been unloved recently and that is WBHO, one of the last men standing in the construction sector in SA along with Murray and Roberts. I think there's an entry point being created here because they've had losses in some of the Australian projects in the Australian division but I suppose it's a bet on SA getting some infrastructure spend
going to stimulate economy."
Nesan Nair from Sasfin Securities chose MTN as his stock pick of the day and Mark du Toit from Oyster Catcher Investments chose Investec.
Nair said: "I'm going to go with the local stock, MTN. Mark mentioned this theme that it looks like some of the local shares have turned around earnings wise. We saw Telkom and MTN have very good trading updates, so I think maybe, potentially, fingers crossed, we could be seeing a turnaround in the telco space right now."
du Toit said: "We like the the SA banking sector and within that I'm going to go for the the higher risk option which is Investec. Domestics business of 60% South Africa and 40% UK and then within the business 70% banking and 30% wealth. They unbundled most of their holding in the asset management business Ninety One but they still have a 25% stake in the business which they will sell down over time. They're only trading at about 40% to book value, so there is quite a lot of upside to come but it does come with its risks"
David Shapiro from Sasfin Securities is looking at commodity prices and Wayne McCurrie from FNB Wealth & Investments chose Long4Life.
Shapiro said: "I could buy anything today, I haven't even thought about it etc because everything's going up and it's so difficult to try and identify any particular business. I must tell you that I have been impressed by where commodity prices are going. For the first time in a long time I'm not averse to things like Anglo American or BHP Billiton at these kind of levels."
McCurrie said: "I was going to go for a big discount share, Naspers but after talking about Long4Life, there's another big discount share so why not and there's a big discount to nav."
Drikus Combrinck from Capicraft chose Farmland Partners Pref share as his stock pick of the day and Jean Pierre Verster from Protea Capital Management chose Admiral Group.
Combrinck said: "My pick is Farmland Partners is listed REIT in the US. I'm buying the preferred as well, the preferred is actually my stock pick and the preferred share yields about 6% at the stage. But they've got a kicker and the kicker is that you get 50% of the participation in a broad index of farmland in the US which I am bullish on. And if that doesn't realize you still get your 6%."
Verster said: "My stock pick is a short-term insurer listed in the UK called Admiral Group, they focus on motor vehicle short-term insurance. They have very good underwriting margins, combined ratios in the 80s as a percent which is world-class. They are growing their market share is and it is increasing in the UK and they've expanded to Europe and the US as well"
Deryck Janse van Rensburg from Anchor chose Intel as his stock pick of the day and Nick Crail from Asburton Investments chose Merck.
Janse van Rensburg said: "My pick is Intel, it's a very well know worldwide brand and it's obviously been in the tech industry for many many years. The company suffered for quite some time as we saw this big tick up and as they adapted to the environment that we are exposed to and that we know today. There is a little bit of a reject going on in the company at the moment where there's a new CEO coming in and I certainly think he's going to bring a little bit of flair to the company that's going to give it a different trajectory and I'm looking forward to that.Crail said: "My stock pick is offshore, and it's a company that I think has taken a bit of a beating through the pandemic and they are 20% off where it was trading before the pandemic started. It is a large pharmaceutical company called Merck and it's listed in the US. They recently came out with a set of results that show that it probably, through the course of the pandemic lost around 5% of its top line due to the pandemic, but I think as we watch more and more of these vaccines happen, especially in the developed world and the world returning to normal, I think this is certainly a stock that can play a lot of catch up moving forward."
Chantal Marx from FNB Wealth & Investments chose Bidcorp as her stock pick of the day and Graeme Körner from Körner Perspective chose HSBC.
Marx said: "My stock pick is BidCorp, it's a big food services company which was spun out of Bidvest a few years ago. I think that with the normalisation of economic activity and a return to mobility, people going to bars, restaurants and hotels, BidCorp could be a key beneficiary there. They drive those big cold chain trucks that deliver fresh ingredients to restaurants and hotels and I think that they are going to win when everyone starts going out again."
Körner said: "I'm going with HSBC, the BOE warning of interest rates, you'd say, why are you running into this burning building but the reality is the banks have been been battling with with very low net interest margins for some time and our hypothesis is it's still fundamentally a good business"
David Shapiro from Sasfin Securities chose Contemporary Amparex Technology Co. as his stock pick of the day and Wayne McCurrie from FNB Wealth & Investments chose Pfizer.
Shapiro said: There's a company that we've been looking at that supplies batteries to BMW, Volvo and especially Tesla which is called Contemporary Amparex Tech. 300750 is their code in China in the shanghai market. They're opening three new factories because and this is a wonderful company, but I'm not sure how we're going to buy a Chinese company.
McCurry said: "I'm going for Pfizer and they had slightly disappointing results out now but they updated their outlook quite significantly and this is a 10 PE share, so I think there's quite a bit of upside here."
Gerbrand Smit from N-e-F-G Fund Managers chose Remgro as his stock pick of the day and Siboniso Nxumalo from from Old Mutual Investments chose Sasol.
Smit said: "I'm going SA inc. and choosing Remgro, if you look at them at the end of June their net asset value as a holding company was R154 a share. Most of those assets has been in an upward phase and the prices are worth more now."
Nxumalo said: "My stock is Sasol, we think that the supply side of oil is coming under pressure. If you look at what really disrupted oil, it's Shell in America, the banks are no longer funding Shell and a lot of those wells have had to be shut down. And so therefore we've now seen OPEC+ which is in Saudi Arabia and Russia shut down and cut supply and we've seen the price react. Commodities are all about supply and if the supply is constrained and demand is going to increase, because we're going to travel more etc, I think that bodes well for Sasol."
Devin Shutte from The Robert Group chose Distell as his stock pick of the day and Mia Kruger from Kruger International chose Visa.
Shutte said: "I'm going for a domestic company tonight, it's one that I have spoke about before on the show and it is Distell. They're in a very tough space at the moment but what you are buying here is an incredibly local run company with a really resilient portfolio.
Kruger said: I'm going for Visa, they came out with their earnings results last week and they did slightly better than analysts expected and they're still expecting a growth of around 8% this year.
Alex Duys from Umthombo Wealth chose British American Tobacco as his stock pick of the day and Gary Booysen from Rand Swiss chose Alibaba
Duys said: "My pick is British American Tobacco, I think we're in a world where interest rates are low and valuations are quite expensive. BAT is a business that is yielding 7.7% in pound sterling terms. It's most likely going to grow in stock lines with margin expansion which means you're going to get growth in earnings."
Booysen said: "I would probably go for Alibaba at the moment, and if you look at the Alibaba chart you'll see there has bee a gradual uptrend and a nice pull back from very overbought levels."
David Shapiro from Sasfin Securities chose Microsoft as his stock pick of the day and Wayne McCurrie from FNB Wealth & Investments chose cash.
Shapiro said: "I looked at Microsoft's results and they are pretty good, I think we're going to get similar results from all the tech companies. I looked at the gaming side and the cloud side of Microsoft and I still think these are massive themes that are going to dominate.
McCurrie said: "I'm going to be a bit more cautious and I'm going to sit on cash. I think there could be a little bit of weakness coming into the market."
Jean Pierre Verster from Protea Capital Management chose Asos as his stock pick of the day and Meryl Pick from Old Mutual Investments chose MTN.
Pick said: "I'm going for MTN, a few months ago there was some negative news flow once again about Nigeria and I think that spooked the market about them needing to suspend or audit sim registrations. I think MTN was weak given what the oil price has done and therefore downed the consumption in Nigeria. I think that the fears around a big fine are perhaps overloaded.
Verster said: "My stock pick is listed in London and it's called Asos, it's an online apparel or fashion retailer and focuses on the youth market. They are mostly in the UK but are increasing their footprint to Europe and the rest of the world as well. During this week they made a bid to buy Topshop and it will be a very good deal if it is successful"
Ricus Reeders from PSG Wealth Sandton chose Satrix China ETF as his stock pick of the day and Chantal Marx from FNB Wealth & Investments chose Raubex .
Reeders said: "There has already been a switch to emerging markets and the one that we can do locally, if you have a local shares portfolio is Satrix China. "
Marx said: "I've gone for Raubex, the stock really hasn't done much despite the fact that they won an additional R6bn worth of tenders since release results where they already had a strong R10bn order book. This company will benefit from a continued roll-out of a backlog of road infrastructure as well as government's recently gazetted infrastructure projects."
Mia Kruger from Kruger International chose Alviva as her stock pick of the day and Graeme Körner from Körner Perspective chose Shoprite.
Kruger said: "My pick is Aliva, SA's largest IT provider. They're a small cap, a value play and they are a trading at a price far below their value. They managed to stay cash-flow positive and profitable during covid and we think that this is a small company that does have upside in the South African economy."
Körner said: "I'm going with Shoprite and I think they've done so much good, they've positioned themselves very well within e-commerce, obviously they've taken pain in parts of Africa more recently. Their forward earnings to June was around R8 which reflects a difficult time but if I fast track a year out I can easily see them deliver R9 to R9,50 as things start to normalise."
Wayne McCurrie from FNB Wealth chose Anglo Gold as his stock pick of the day and Nesan Nair from Sasfin Securities chose Naspers.
McCurrie said: "I'm going for Anglo Gold, I think it's the first time I've ever punted a gold share, I know the share prices are still high relative to the underlying gold price. They have come off quite significantly since the peak in the middle of last year but I think shorter term and I don't think dramatically but I think there's rising inflation and higher interest rates coming through the system, and maybe even a little bit of stock market volatility. In that scenario it's not a long-term plan but I think in the next month or two the gold shares could actually do quite well."
Nair said: "I'm going to go for Naspers, just on the price action in the last week, I mean you cannot ignore it. Every day you switch on that screen and it's up a percent or two or four. Something is going on here it's not just the share buybacks, there certainly seems to be a lot of buyers out there so that's one I think we should look at in the short term."
Deryck Janse van Rensburg Anchor chose Afrimat as his stock pick of the day and Drikus Combrinck from Capicraft chose Gladstone Land REIT
Janse van Rensburg said: "My stock pick tonight is Afromat, I think as you mentioned earlier in the show iron-ore prices and where it is at the moment is very supportive, the stock is looking very cheap and I back management as they've executed extremely well over the last three to five years. I also see some upside in the share price."
Combrinck said: "My stock is called Gladstone Land Corporation, it's one of only two REITS in the US that buys farmland and only farmland. Obviously bullish agricultural commodities and they've done well."