WATCH: Stock picks — Barclays Africa and Schibsted

Ashraf Mohamed from Arqaam Capital chose Barclays Africa as his stock pick of the day and Jean Pierre Verster from Fairtree Capital chose Schibsted.

Mohamed said that the news that the Barclays Africa’s CEO stepped down last week was perceived quite negatively, but the business was going through a lot of change and trading at a discount to its peers.

“This is a long-term investment and within two to three years there should be 30% increase,” he said.

Verster said that Schibsted was the Norwegian equivalent of Naspers’s Media 24 and OLX. The e-commerce operations generate the bulk of the operating profits and the company has operations in western Europe and is number one in 18 countries. Schibsted has a joint venture with Naspers and OLX in Brazil.

“By buying Schibsted, you gain exposure to world-class commerce assets with a bit of media on the side,” said Verster.

Source: businesslive.co.za