Stock Watch - Stock Picks — Mondi and J.D.com
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Nesan Nair from Sasfin Securities chose Mondi as his stock pick of the day and Jean Pierre Verster from Fairtree Capital chose J.D.com.
Nair said: "I'm going to go for an old fashion company - Mondi, a packaging company with very good management. I think the share price has been beaten down quite a lot even though the trading update was quite solid. I expect to see good things out of Mondi and I think these are good levels to accumulate."
Verster said:"I am picking a US listed tech stock which makes it which makes its money elsewhere. J.D.com is the Chinese equivalent to Amazon.com. They also compete with Alibaba which is the biggest ecommerce business in China but J.D.com has Tencent as a shareholder with 18% and Google also recently made a $500 million investment. J.D.com also builds up their own logistics, so where Alibaba only connects buyers and sellers, J.D.com actually sells a lot of their products from their own warehouses and that means you can trust the numbers. It's not just people sending packages to themselves which some might say might be happening with other platforms, so, I trust the numbers, I see it as a good competitor to Alibaba and it's trading in a large market. The stock is also cheap due to the current trade wars."
Nair said: "I'm going to go for an old fashion company - Mondi, a packaging company with very good management. I think the share price has been beaten down quite a lot even though the trading update was quite solid. I expect to see good things out of Mondi and I think these are good levels to accumulate."
Verster said:"I am picking a US listed tech stock which makes it which makes its money elsewhere. J.D.com is the Chinese equivalent to Amazon.com. They also compete with Alibaba which is the biggest ecommerce business in China but J.D.com has Tencent as a shareholder with 18% and Google also recently made a $500 million investment. J.D.com also builds up their own logistics, so where Alibaba only connects buyers and sellers, J.D.com actually sells a lot of their products from their own warehouses and that means you can trust the numbers. It's not just people sending packages to themselves which some might say might be happening with other platforms, so, I trust the numbers, I see it as a good competitor to Alibaba and it's trading in a large market. The stock is also cheap due to the current trade wars."