14 Mar Stock Watch - Stock Picks - Absa and Astral Foods

Graeme Körner from Körner Perspective chose Absa Group Limited as his stock pick of the day and Sekgabo Molelekoa from Umthombo Wealth chose Astral Foods Ltd

"Astral you could argue that they posted peak margins last year but we've been seeing that production numbers from a farming point of view are looking better than expected towards the end of 2019. Feed costs should also not accelerating as much as we through it would so even if you apply the same costs as you did in 2017 (before the peak margin) you will still come out with a good looking valuation" said Molelekoa

Graeme Körner said that "without a permanent CEO, Absa and other banks are said to be shrinking violets. We are taking a view that the elections will go according to plan and should get some of that pent up energy in the economy going. When you buy Absa you're buying a decent franchise that is free of the shackles of Barclays. You're buying it on a sub nine PE and a dividend yield of over 7%"
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