Jean-Pierre Verster from Fairtree Capital chose Applied Materials as his stock pick of the day and Drikus Combrinck from Capicraft chose Cameco.
Applied Materials sells semiconductor capital equipment.
“In other words, the machines that specifically make the wafers and other small elements that go into semiconductors. They have been impacted by the current trade wars, some of their chips are no longer allowed to be exported to China anymore and on the back of all this negativity the share has dropped by almost half it’s share price, from $60 per share to $30,” said Verster.
Combrinck said Cameco was listed a few weeks ago has grown by 25% in US dollar terms since then.
“It had nothing to do with their fundamentals but a major lawsuit they won. This pushed their price up. They are the world’s biggest producer and trader of uranium.”