Stock Watch - Stock pick — AB Inbev

Drikus Combrinck from Capicraft chose AB Inbev as his stock pick of the day and and Petri Redelinghys from Herenya Capital had no stock pick. Combrink said:

"AB Inbev has lots of debt because the bought SAB brewery, they have volume problems in some of the traditional markets but they're still expanding margins. You've got a premiumisation and it was also my stock pick last week and it's cheaper, enough so I'm buying and I'm buying more. I'll continue buying even though there's a lot debt and it's a defensive company. Yes they might cut the dividend, so what. If you're a long term shareholder the dividend where it is paid or used to pay back other stuff it's fine. The lower oil price benefits them tremendously because they have transport a lot of the stuff across their vast footprint. So a lower price is actually very nice for their margins."​