Market Wrap - Stock Pick — Neslté
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Kwame Antwi from KOA Capital chose Nestlé SA as his stock pick of the day.
"If you look at the cycle, investors now needs to start positioning their portfolios in a much more defensive fashion and I think Nestlé is one of those businesses. You are gain around 40% revenue coming from the emerging market and the balance from the developed world, so you capturing the demographic dividend that is coming from an emerging market and urbanisation but at the same time you are also capturing the benefits of the wellness business that comes out from the developed business. It's a huge business, they are still delivering above industry growth, they're still cutting costs and you are still seeing earnings growth above 15%. For me, this is a quintessential blue chip business, if you want security, that is where you want to put your money."
"If you look at the cycle, investors now needs to start positioning their portfolios in a much more defensive fashion and I think Nestlé is one of those businesses. You are gain around 40% revenue coming from the emerging market and the balance from the developed world, so you capturing the demographic dividend that is coming from an emerging market and urbanisation but at the same time you are also capturing the benefits of the wellness business that comes out from the developed business. It's a huge business, they are still delivering above industry growth, they're still cutting costs and you are still seeing earnings growth above 15%. For me, this is a quintessential blue chip business, if you want security, that is where you want to put your money."
