Stock Watch - Stock Picks — Zambezi Plat and Reinet
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Gerbrand Smit from NeFG Fund Management chose Zambezi Plat as his stock pick of the day and Rowan Williams from Nitrogen Fund Managers chose Reinet
Smit said: "I'm gonna go with Zambezi Plat, if you want a bit of a more stable upside long-term wise or in the next five or six years I think that structure is still structured for five or six years. You get prime plus three and a half percent on a platter, you must just check your entry point you can actually build it on a spreadsheet. I think the correct price for this should be close to R70,50 at the moment. It went up 2% on Thursday but yeah if you can get it below I R71,50 where it has been trading for the last month or so, I think it is a nice entry point and you get 13% on a platter going forward."
Williams said: "We like Reinet right now, it just came out with an update in terms of the net asset value and what we are seeing is good growth in the secondary asset which is PensCorp a UK-based insurance business it's starting to offset British American Tobacco in terms of the size in the portfolio we know British American Tobacco is cheap it is under some pressure but it looks like a good deal little close to forty percent discount to NAV."
Smit said: "I'm gonna go with Zambezi Plat, if you want a bit of a more stable upside long-term wise or in the next five or six years I think that structure is still structured for five or six years. You get prime plus three and a half percent on a platter, you must just check your entry point you can actually build it on a spreadsheet. I think the correct price for this should be close to R70,50 at the moment. It went up 2% on Thursday but yeah if you can get it below I R71,50 where it has been trading for the last month or so, I think it is a nice entry point and you get 13% on a platter going forward."
Williams said: "We like Reinet right now, it just came out with an update in terms of the net asset value and what we are seeing is good growth in the secondary asset which is PensCorp a UK-based insurance business it's starting to offset British American Tobacco in terms of the size in the portfolio we know British American Tobacco is cheap it is under some pressure but it looks like a good deal little close to forty percent discount to NAV."
