Stock Watch - Stock Picks - Adcock Ingram and Discovery
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Mark du Toit from Courtney Capital Private Wealth chose Adcock Ingram as his stock pick of the day and Graeme Körner from Körner Perspective chose Discovery.
Mark du Toit said that he is looking more in the space of quality companies that don't have a lot of debt. Adcock has a very low debt to equity ratio, its earnings are defensive, it does like a stronger rand so one should bear that in mind as well. It's a good quality company at a fair price.
Körner said "rightly the market proxies and there's angst around what Moody's is going to do on Friday but I believe that Discovery is a fundamentally different business. It has lost 23% over the last year and it's a much better business. If you look at their results there was really not much to criticize. We have finally had the launch of the bank and we'll see how that goes but their history is one of building businesses that are disruptive and actually generate a return.
Mark du Toit said that he is looking more in the space of quality companies that don't have a lot of debt. Adcock has a very low debt to equity ratio, its earnings are defensive, it does like a stronger rand so one should bear that in mind as well. It's a good quality company at a fair price.
Körner said "rightly the market proxies and there's angst around what Moody's is going to do on Friday but I believe that Discovery is a fundamentally different business. It has lost 23% over the last year and it's a much better business. If you look at their results there was really not much to criticize. We have finally had the launch of the bank and we'll see how that goes but their history is one of building businesses that are disruptive and actually generate a return.