Market Wrap - Stock Pick — Super Group
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Graeme Franck from PSG Wealth Sandton chose Super Group as his stock pick of the day.
Super Group came out with numbers earlier in the week and actually managed to grow their headline earnings per share by twelve percent and and that in the backdrop of the country that's battling so much. They're now trading on a p/e of about seven point five to seven point seven times so it's very low and that type of PE tends to indicate that earnings are going to fall as opposed to being up 12 percent. And just anecdotally, the valuation gap between SA Inc shares so the retailers, industrial, the banks versus the non SA inc shares so all the dual listed rand hedges stocks - that valuation gap has never been as high as it is now so the market is clearly worried about what's going on in South Africa
Super Group came out with numbers earlier in the week and actually managed to grow their headline earnings per share by twelve percent and and that in the backdrop of the country that's battling so much. They're now trading on a p/e of about seven point five to seven point seven times so it's very low and that type of PE tends to indicate that earnings are going to fall as opposed to being up 12 percent. And just anecdotally, the valuation gap between SA Inc shares so the retailers, industrial, the banks versus the non SA inc shares so all the dual listed rand hedges stocks - that valuation gap has never been as high as it is now so the market is clearly worried about what's going on in South Africa
