Stock Watch - Stock Picks - Sygnia Itrix SP500 ETF (SYG500) and Aspen Pharmacare
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Ian Cruickshanks from SAIIR chose Sygnia Itrix SP500 ETF (SYG500) in dollar terms. "You get a double option there and I think the rand strengthened quite nicely recently, I can't see it holding indefinitely at about R14,06 to the dollar. It's a bit expensive and if you compare our economy to the US economy there is no choice at all"
Graeme Körner from Körner Perspective chose Aspen Pharmacare as his stock pick of the day. "They fell from grace a few years ago and people are very scared of it because they have disappointed the market a few times. If you look at the consensus earnings forecast, and looking through the near term earnings we ask, what is this business? It transformed itself from a generics business and I think built a really good portfolio with a lot of optionality. Right now it is being prices as if they disappointed once to often. It is a mid to late single digits dollar earnings growth story and anywhere else in the world I would pay a 15 multiple for that. I think Aspen is just to cheap and they have results coming and if they get it a little bit right it is worth it"
Graeme Körner from Körner Perspective chose Aspen Pharmacare as his stock pick of the day. "They fell from grace a few years ago and people are very scared of it because they have disappointed the market a few times. If you look at the consensus earnings forecast, and looking through the near term earnings we ask, what is this business? It transformed itself from a generics business and I think built a really good portfolio with a lot of optionality. Right now it is being prices as if they disappointed once to often. It is a mid to late single digits dollar earnings growth story and anywhere else in the world I would pay a 15 multiple for that. I think Aspen is just to cheap and they have results coming and if they get it a little bit right it is worth it"
