Stock Watch - Stock Picks — THQ Nordic and Sasol
--:--
Jean Pierre Verster from Fairtree chose THQ Nordic as his stock pick of the day and Graeme Körner from Körner Perspective chose Sasol Limited
Verster said: "As usual I'm picking an offshore share, and my favorite region for the last while has been Scandinavia. There's some great companies listed there, this company is listed in Sweden it's called THQ Nordic. It's a gaming publisher and they also own developers of PC and console games also a few mobile games but it's more the hardcore games. If you look at the gaming market you get PC or mobile and console which is closer to PC and then you get casual and hardcore. The hardcore are the guys who sit in front the computer for hours on end, they spend a lot of money on these titles and therefore they can be very profitable so, they've got a few of these titles but no blockbusters that cost them hundreds of millions of dollars to develop like EA or Activision has. They've got to a porftolio of more than 100 different games but they make a lot of money, it costs them less, with good returns and they're growing and I like the prospect.
"Körner said: "I think I must put a caveat on, I don't know where the logical price is for Sasol because I think you've got again these disruptors where you've got a lot of capacity that's come on in in North America. When I look at oil at $73 a barrel and Donald Trump's walking around the Middle East which has got lots of powder kegs with a lit match I get quite anxious about that. If you if you think about Sasol at least historically it was really a Rand oil price play so, on that metric I can probably find value of almost R500 and you've got the optionality with Louisiana now finally generating something. I'm not saying by Sasol and put it in your bottom drawer and forget about it because I think that's the kind of share that you now need to review on an ongoing basis. But, if I take a a year to two years view I think the earnings will be reasonably strong and yeah I think you'll make
Verster said: "As usual I'm picking an offshore share, and my favorite region for the last while has been Scandinavia. There's some great companies listed there, this company is listed in Sweden it's called THQ Nordic. It's a gaming publisher and they also own developers of PC and console games also a few mobile games but it's more the hardcore games. If you look at the gaming market you get PC or mobile and console which is closer to PC and then you get casual and hardcore. The hardcore are the guys who sit in front the computer for hours on end, they spend a lot of money on these titles and therefore they can be very profitable so, they've got a few of these titles but no blockbusters that cost them hundreds of millions of dollars to develop like EA or Activision has. They've got to a porftolio of more than 100 different games but they make a lot of money, it costs them less, with good returns and they're growing and I like the prospect.
"Körner said: "I think I must put a caveat on, I don't know where the logical price is for Sasol because I think you've got again these disruptors where you've got a lot of capacity that's come on in in North America. When I look at oil at $73 a barrel and Donald Trump's walking around the Middle East which has got lots of powder kegs with a lit match I get quite anxious about that. If you if you think about Sasol at least historically it was really a Rand oil price play so, on that metric I can probably find value of almost R500 and you've got the optionality with Louisiana now finally generating something. I'm not saying by Sasol and put it in your bottom drawer and forget about it because I think that's the kind of share that you now need to review on an ongoing basis. But, if I take a a year to two years view I think the earnings will be reasonably strong and yeah I think you'll make