Stock Watch - Stock Picks — Woolworths and Libstar

Nick Kunze from Sanlam Private Wealth chose Woolworths as his stock pic of the day and Segkabo Molelekoa from Umthombo Wealth chose Libstar HoldingsKunze said: "I choose Woolworth, they released earnings a couple of weeks ago and the stock went back up to over R50 per share. It looks like they are finally turning things around. I don't think that it is going to get much worse, they've gone from 2% sales growth into the 5%-6%. It also looks like they are getting David Jones right, albeit slowly but surely. At a 15 PE it is not to demanding for its long term share holders."Molelekoa said: "Libstar is a supplyer to Woolworth and I choose them partly on the back of Woolworth's improving performance. Their top five customers make up over 50% of their customer base and we are seeing big growth in private label, South Africa still has to catch up to European standards. They have reduced their capex demands going forward so they are going to be in a consolidation phase and on a PE basis it is undemanding compared to its peers."