Stock Watch - Stock Picks — Distell and Altron

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Devin Shutte from The Robert Group chose Distell as his stock pick of the day and Rowan William from Nitrogen Fund Managers chose Allied Electronics Corp A (AEL)

Shutte said: "My pick is a small liquor company based out off Stellenbosch, and why I like it is because - you've got great operating earnings growth in a tough environment, a really good portfolio of assets that they're getting good growth in the alternative labels. Fantastic cost containments with a really strong balance sheet and as a result you've got this really great little compound that plows through the economic circle, irrelevant of what's happening so yes we think there's significant upside.

William said: "We are going with Altron, a similar kind of theme in terms of a great equity compound, I think you've got a business that had a difficult period, has gone through quite a significant restructuring and is now in a new phase of growth with a completely new management team. They streamlined service offerings with a very clear understanding of what it's trying to deliver to its customers around ICT and is on the cusp of some secular growth in terms of the adoption of technology cloud-based services. It has quite a big exposure to the UK as well, so it has diversified away from South Africa, it is still on a reasonable multiple and the earnings growth - at least for the next few years looks fairly certain and solid."
6 Aug 2019 2AM English South Africa Business · Investing

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