Stock Watch - Stock Pick — Novo Nordisk and ARC
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Ricus Reeders from PSG Wealth Sandton chose Novo Nordisk as his stock pick of the day and Graeme Körner from Körner Perspective chose African Rainbow Capital Investments.
Reeders said: A pharmaceutical company from Denmark their big thing is in the treatment of diabetic type one and they've just had a drug approved by the FDA which stops you from injecting and rather you can just swallow a tablet so that's the sort of sizzle on it technically graph wise they look very good I think they can probably go to about 68 dollars and they are pretty cheap with a twelve PE and return on investments is at about 78%.
Körner said: "I like the underlying portfolio a lot of the businesses are sort of fairly small and are not really popping on to anybody's radar but you know a little while ago they bought Capital legacy for example, they've got some very interesting financial services company in there. Of course one of the big investments is Rain and a lot of people are sceptical about that valuation but I really do believe that model is going to work. So it's trading at half its nav with a great management team and great jockeys. To me it just looks too cheap I think there's a lot of good businesses in there and a lot of optionality and in a really energetic well-placed portfolio."
Reeders said: A pharmaceutical company from Denmark their big thing is in the treatment of diabetic type one and they've just had a drug approved by the FDA which stops you from injecting and rather you can just swallow a tablet so that's the sort of sizzle on it technically graph wise they look very good I think they can probably go to about 68 dollars and they are pretty cheap with a twelve PE and return on investments is at about 78%.
Körner said: "I like the underlying portfolio a lot of the businesses are sort of fairly small and are not really popping on to anybody's radar but you know a little while ago they bought Capital legacy for example, they've got some very interesting financial services company in there. Of course one of the big investments is Rain and a lot of people are sceptical about that valuation but I really do believe that model is going to work. So it's trading at half its nav with a great management team and great jockeys. To me it just looks too cheap I think there's a lot of good businesses in there and a lot of optionality and in a really energetic well-placed portfolio."