WATCH: Stock picks — Remgro and BAT

Gerbrand Smit from N-e-F-G Frund Managers chose Remgro as his stock pick of the day and Chantal Marx from FNB Wealth & Investments chose BAT.

Smit said: “I’m going for Remgro … I know [its] out of favour … but it’s sitting at a huge discount to what the NAV [net asset value] was … We are now in much higher markets and we know that some of the assets have actually grown considerably, especially FirstRand, RMI and some other investments.”

Marx said: “I’m also going to punt an old punt, British American Tobacco [BAT]. The stock still looks very, very cheap, you’ve got an 8.5% dividend yield, so even if the share price doesn’t go anywhere, you still get compensated quite adequately for taking that position.”