WATCH: Stock picks — Adcock Ingram and Discovery

Mark du Toit from Courtney Capital Private Wealth chose Adcock Ingram as his stock pick of the day and Graeme Körner from Körner Perspective chose Discovery.

Du Toit said he is looking for quality companies that do not have a lot of debt. “Adcock has a very low debt to equity ratio, its earnings are defensive and it does like a stronger rand, so one should bear that in mind as well. It’s a good quality company at a fair price.”

Körner said: “There’s angst around what Moody’s is going to do on Friday, but I believe that Discovery is a fundamentally different business. It has lost 23% over the last year and it’s a much better business. If you look at their results, there was really not much to criticise. We have finally had the launch of the bank and we’ll see how that goes. But their history is one of building businesses that are disruptive and actually generate a return.”