Stock Watch - Stock Picks — Anglo American and Transaction Capital
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Mark du Toit from Courtney Capital Private Wealth chose Anglo American as his stock pick of the day and Wayne McCurrie from FNB Wealth & Investments chose Transaction Capital.
du Toit said: "Interest rates are coming down world wide and the global economy, particularly in Europe has been lackluster and America is slowing. I think the next big thing is going to be infrastructure renewal and we're starting to see quite a few countries joining in on this theme. I think that diversified miners are well placed to play to that theme. Anglo has been through a torrid time, its balance sheet is looking a lot better than it has done in the past and there's not a lot of new mines coming online so the supply will not outstrip the demand. I also think Anglo America is a quality company and it will do well.
McCurrie said: "A smaller company but they seem to know the industry very well. They seem to be able to transact through thick and thin in up-down economies and two parts of the businesses are doing nicely. They are at a reasonable valuation and are fully integrated in the industry, and in this tough industry they are doing quite well."
du Toit said: "Interest rates are coming down world wide and the global economy, particularly in Europe has been lackluster and America is slowing. I think the next big thing is going to be infrastructure renewal and we're starting to see quite a few countries joining in on this theme. I think that diversified miners are well placed to play to that theme. Anglo has been through a torrid time, its balance sheet is looking a lot better than it has done in the past and there's not a lot of new mines coming online so the supply will not outstrip the demand. I also think Anglo America is a quality company and it will do well.
McCurrie said: "A smaller company but they seem to know the industry very well. They seem to be able to transact through thick and thin in up-down economies and two parts of the businesses are doing nicely. They are at a reasonable valuation and are fully integrated in the industry, and in this tough industry they are doing quite well."