Stock Watch - Stock Pick — Microsoft and Sasol
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Nesan Nair from Sasfin Securities chose Microsoft as his stock pick of the day and Nick Crail from Ashburton Investments chose Sasol
Nair said: "I'm going with Microsoft, the old fashion producer of Windows and Microsoft Office and now the Microsoft Azure Cloud. What I really like about the company is that they completely re-invented their business with this model of software as a service, so they get annuity income rather than just selling a product. Then you have the cloud and I think we are going to secular growth coming from that - from corporate and other businesses migrating, streaming and gaming services. Between Microsoft, Google and Amazon they basically own the cloud infrastructure.
Crail said: "My pick is Sasol, ultimately if you look at the fundamentals, historically where Sasol has traded it is trading at a significant discount at the moment. The reasons for that is because they are struggling to deliver what they should of a time back at a significantly less price in the US. Ultimately I think you are anywhere up to a 0 to 12 months away from them being able to deliver it, that is starting to work out and if that does work out, as expected, then you will see a significant upside from the current share price."
Nair said: "I'm going with Microsoft, the old fashion producer of Windows and Microsoft Office and now the Microsoft Azure Cloud. What I really like about the company is that they completely re-invented their business with this model of software as a service, so they get annuity income rather than just selling a product. Then you have the cloud and I think we are going to secular growth coming from that - from corporate and other businesses migrating, streaming and gaming services. Between Microsoft, Google and Amazon they basically own the cloud infrastructure.
Crail said: "My pick is Sasol, ultimately if you look at the fundamentals, historically where Sasol has traded it is trading at a significant discount at the moment. The reasons for that is because they are struggling to deliver what they should of a time back at a significantly less price in the US. Ultimately I think you are anywhere up to a 0 to 12 months away from them being able to deliver it, that is starting to work out and if that does work out, as expected, then you will see a significant upside from the current share price."