Stock Watch - Stock Picks —Lockheed Martin and Adapt IT

Gary Booysen from Rand Swiss chose Lockheed Martin as his stock pick of the day and Ashraf Mohamed from Arqaam Capital chose Adapt IT

Booysen said: "Lockhead Martin is one of the world's biggest defense contractors and it essentially has a long term pipeline with the US government, that looks very very attractive. Defense contractors also trade at a discount to the overall market so, Lockheed Martin is trading between 13 and 14 times earnings which I think it's going to give it a little bit of stability. The market has potentially run a little bit ahead of itself and I think if you look at something like Lockheed Martin a US fortune 500 kind of company that is not particularly extended at the same time you look at a projected earnings growth around 14%.

Mohamed said: "Adapt IT is a beneficiary of the the EOH debacle especially when it comes to corporates. Government is not affected that much yet because of all the tender processes. A lot of corporates are saying we don't want to be somewhere where it's tainted. A lot of
them are opting to to do contracts with Adapt IT. Adapt IT is also expanded into not only South Africa but the rest of Africa, doing business with oil and gas companies, they purchased oil and gas IT service provider five years ago and there's a fair bit of upside within that business. They also big SAP distributors in Southern Africa so very cheaply priced and I see another 20% upside from them.
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