Stock Watch - Stock Pick — Novo Nordisk and ARC

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."