WATCH: Stock picks — EOH and Mycronic

Jean-Pierre Verster from Fairtree Capital chose Mycronic as his stock pick of the day and Ashraf Mohamed from Arqaam Capital chose EOH.

Verster said Mycronic builds the machines that make the pixels on screens, including computer and cellphone screens. It also has machines that create integrated circuit boards.

“Although they only sell one machine per year, it sells for a few hundred million dollars and they continue to make money on the products through after-sale care and maintenance.”

Mohamed said EOH was quite a controversial stock at the moment.

“They have suffered the pain and released a set of results, it is trading on a price-earnings ratio of just under 11 times. The new management will ‘fix’ this business and once the evidence of ‘a new broom sweeps clean’ starts showing the share price should start to appreciate.”