Stock Watch - Stock picks — Kone OYJ and Brait
--:--
Rowan Williams from Nitrogen Fund Managers chose Brait as his stock pick of the day and Jean Pierre Verster from Protea Capital Management chose Kone OYJ.
Williams said: "I'm going with Brait, it just finished its right issue process and it closed today, in terms of the right to stop trading and there was a lot of pressure on the stock so, it is at a low point and it is recapitalised and there is a lot of optionality in the stock."
Verster said: "I'm going with Kone, they are listed in Finland and are one of 4 of the 5 major elevator companies and because there is only four or five of them it means that it is a good concentrated market. Economics and characteristics allow for high returns on capital and they are trying to buy Thyssenkrupp Elevators, a German company that are in debt problems, it's a strong company and we are going higher and higher in terms of tall buildings, and we need elevators."
Williams said: "I'm going with Brait, it just finished its right issue process and it closed today, in terms of the right to stop trading and there was a lot of pressure on the stock so, it is at a low point and it is recapitalised and there is a lot of optionality in the stock."
Verster said: "I'm going with Kone, they are listed in Finland and are one of 4 of the 5 major elevator companies and because there is only four or five of them it means that it is a good concentrated market. Economics and characteristics allow for high returns on capital and they are trying to buy Thyssenkrupp Elevators, a German company that are in debt problems, it's a strong company and we are going higher and higher in terms of tall buildings, and we need elevators."