Meryl Pick from Old Mutual Investments chose Sibanye-Stillwater as her pick of the day and Nesan Nair from Sasfin Securities chose Bidvest.
Pick said: “The PGM [platinum group metal] stocks have all pulled back over the last quarter, and one that I find intriguing is Sibanye-Stillwater. I’ve been quite critical in the past of the Stillwater deal and they’ve proved me completely wrong. Maybe the rest of the market is very sceptical and hence it’s lagged, but if you look on spot PGM and gold prices, it’s sitting at a 29 free cash flow yield for the next set of financials. And you get a good mix of commodities and optionality.”
Nair said: “I’m going with Bidvest, I think it’s been flying under the radar for quite a long time now. I do see an SA post Covid-19 and I think the big industrials, particularly Bidvest, are very well geared up because of the amount of cash that they have on their balance sheet to take advantage of the opportunities that are inevitably going to come their way.”