You've seen the business news, got the gist of the bourses and heard what the country's top CEOs have to say. It's now time for some in-depth markets analysis.
This half hour show was the first of its kind in the business TV market in South Africa – every night our anchors are joined by two markets experts who tell you what shares to be buying, holding or selling.
A Tiso Blackstar Group Production.
Keywords: money, opportunity, business plan, business ideas, business news, income, financial news
Absa and Shoprite
Gerbrand Smit from N-e-F-G Fund Managers chose Absa as his stock pick of the day and Chantal Marx from FNB Wealth & Investments chose Shoprite.
Smit said: "Absa came out with their trading statement again today, I think at around R9.30 for the six months. It's close to R19 full year, it's a 6.3PE multiple so the impairments were made too much like we thought it would be. I just think those banks are going to be less affected than what people expected."
Marx said: "So my stock pick tonight is Shoprite, I don't think the stock looks terribly expensive at all. They will benefit from higher soft commodity prices because they'll actually be able to to squeeze some of the food producers and get some decent margin from increased food inflation."
Groupe Bruxelles Lambert and Raubex
Rowan Williams from Nitrogen Fund Managers chose Groupe Bruxelles Lambert as his stock pick of the day and Alex Duys from Umthombo Wealth chose Raubex.
Williams said: "A company called Groupe Bruxelles Lambert (GBL), it's actually listed in Brussels and it is a family driven holding company. It has significant stakes in European Consumer stocks like Adidas and Pernod Ricard and then big stakes in Lafarge wholesome which is a cement manufacturer so it's quite a diversified group and is trading at a significant discount to NAV of around 35%."
Duys said: "I'm going to go for Raubex, we saw the results yesterday which indicated that tender activity obviously has picked up quite a lot as well as their order book which was up almost 70%. I think the comment made by the CEO is that they've seen the most tender activity in almost 50 years, that tells you that something is happening on the ground and they're specifically doing well in the Sanral and road work side so that book is almost full which means only new business will come in and it will be at higher margins."
Autonation and Afrimat
Karl Gevers from Benguela Global Fund Managers chose Autonation Inc as his stock pick of the day and Independent Analyst Chris Gilmour chose Afrimat.
Gevers said: "I pick Autonation, it's essentially one of the biggest car dealership companies in the USA and I think it'll it'll benefit from that whole stimulus and economic recovery."
Gilmour said: "I'm going to go back to another old favourite of mine which is Afromat and you know with the with the iron-ore price in Singapore hitting around 236 dollars a ton and the Afromat share price is nowhere near what it should be in terms of its valuation."
Stock pick — Rhodes Food and Coinbase
Meryl Pick from Old Mutual Investments chose Rhodes Food as her stock pick of the day and Gary Booysen from Rand Swiss chose Coinbase.
Pick said: "I am picking Rhodes food group, it's a mid cap which I cannot really understand why it trades at quite a large discount on a PE multiple relative to its competitor Tiger Brands, and so this is a company that came out of nowhere and took market share away from the beloved KOO brand.
Booysen said: "I'm going to for a super speculative stock pick in Coinbase which is recently listed overseas on the Nasdaq. It's essentially it's a crypto exchange and we always get asked about trading crypto."
Stock picks — Global X Lithium & Battery Tech ETF, Pfizer & Transaction Capital
David Shapiro from Sasfin Securities chose Global X Lithium & Battery Tech ETF and Wayne McCurrie from FNB Wealth & Investments chose Pfizer & Transaction Capital.
Shapiro said: "Climate change is going to be such a big subject, there's a lovely ETF, (LIT) is its code which is a lithium and battery ETF as well and I think we've got to start getting involved in this because it's going to dominate talk for so long."McCurrie said: "I had two candidates; Phizer came out with results that were spectacular, I mean their vaccine is going to shoot the lights out as far as sales and profits are concerned but then also Transaction Capital came out with the trading update which is amazing."
Stock picks — Goldfields and Malibu Boats
Drikus Combrinck from Capicraft chose Gold Fields as his stock pick of the day and Jean Pierre Verster from Protea Capital Management chose Malibu Boats.
Combrink said: "My pick in the gold sector is Gold Fields, a well-run company and they are having an increase in production profile. It is not the cheapest one in the sector but definitely a liquid one if you're looking for a trade in a rising gold price."
Verster said: "I'm going for a US listed company company called Malibu Boats and it's another red-hot market that came out with quarterly results today. And with the US opening up and vaccinations going well, people want to get out to the open air and they are buying boats, they are wakeboarding, they are fishing, they're enjoying their time on the waters and Malibu Boats is one of the major leading manufacturers of boats and is enjoying a very strong growth in sales at the moment."