Stock Watch - Stock Picks - KAP Industrial Holdings and cash
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Nick Kunze from Sanlam Private Wealth chose KAP Industrial Holdings as his stock pick of the day and Joseph Busha from JM Busha Investments chose cash.
Kunze said: "Kap Industrial is very much a SA Inc play, we like the fact that that Steinhoff is no longer involved with a twenty six percent holding and they don't even have a representation in the board anymore.
The stock is trading at low blows in the teen PEs and if we managed to get through the elections quite smoothly I think this is one of the ones that will pick up"
Busha said: "Cash is king at the moment, the rand has been quite volatile and is now trading at around R14,50 to the dollar. So there's too much volatility and uncertainty in terms of SA. We hope Eskom has sorted out the electricity, we also hope that the oil price will stabilise between 65 and 70 so that there is no upward pressure. Given the volatility and the fact that the JSE has done about it 10%-11% year to date (just in the first four months) I think it is better to just hold onto your cash."
Kunze said: "Kap Industrial is very much a SA Inc play, we like the fact that that Steinhoff is no longer involved with a twenty six percent holding and they don't even have a representation in the board anymore.
The stock is trading at low blows in the teen PEs and if we managed to get through the elections quite smoothly I think this is one of the ones that will pick up"
Busha said: "Cash is king at the moment, the rand has been quite volatile and is now trading at around R14,50 to the dollar. So there's too much volatility and uncertainty in terms of SA. We hope Eskom has sorted out the electricity, we also hope that the oil price will stabilise between 65 and 70 so that there is no upward pressure. Given the volatility and the fact that the JSE has done about it 10%-11% year to date (just in the first four months) I think it is better to just hold onto your cash."