Stock Watch - Stock Picks - Fortress RIET B and Metair Ltd
--:--
Nick Crail from Ashburton Investments chose Fortress RIET as his stock pick of the day and Mark du Toit from Courtney Capital Private Wealth chose Metair Ltd.
Crail said: " I would definitely be making a stop pick in the SA type of
environment. The stock I'm picking is Fortress B so the Fortress income fund is your higher risk option and there are two classes of shares there the B is the share that does really well when things are going swimmingly and gets absolutely pummeled when things are going badly, ultimately if one is positive on a turn around in SA Inc I think ultimately this is attractive prices to be getting into a stock like this. I do think earnings are going to disappoint for some time but really it comes down into that confidence of a turn around and as the turn around comes
through I think you'll see this rerate."
du Toit said: "I'm gonna pick Metair, a small industrial stock, they've been doing some interesting things they've also started now with a small investment in the lithium-ion business and looking at maybe going into electric vehicles or similar. Their share price came under a lot of pressure when they tried to buy a similar sized business to them in Europe and the market said no that's just way too big an acquisition for you to do and I think it scared market quite quite badly and there were some shareholders that jumped ship but since all of that has been taken off the table completely Value Capital Partners have taken a 10% steak last year so they have a much stronger shareholder base and their earnings recently we were pretty good."
Crail said: " I would definitely be making a stop pick in the SA type of
environment. The stock I'm picking is Fortress B so the Fortress income fund is your higher risk option and there are two classes of shares there the B is the share that does really well when things are going swimmingly and gets absolutely pummeled when things are going badly, ultimately if one is positive on a turn around in SA Inc I think ultimately this is attractive prices to be getting into a stock like this. I do think earnings are going to disappoint for some time but really it comes down into that confidence of a turn around and as the turn around comes
through I think you'll see this rerate."
du Toit said: "I'm gonna pick Metair, a small industrial stock, they've been doing some interesting things they've also started now with a small investment in the lithium-ion business and looking at maybe going into electric vehicles or similar. Their share price came under a lot of pressure when they tried to buy a similar sized business to them in Europe and the market said no that's just way too big an acquisition for you to do and I think it scared market quite quite badly and there were some shareholders that jumped ship but since all of that has been taken off the table completely Value Capital Partners have taken a 10% steak last year so they have a much stronger shareholder base and their earnings recently we were pretty good."