Stock Watch - Stock picks — Progressive Corp and Naspers
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Jean Pierre Verster from Protea Capital Management chose Progressive Corporation as his stock pick of the day and Rowan Williams from Nitrogen Fund Managers chose Naspers
Verster said: "My stock pick is a short-term insurer listed in the US called Progressive Insurance the share code in the US is PGR and they're almost like the OUTsurance equivalent in the US. Like I explained short term insurance is very low risk at the moment, people still pay their premiums so I think it's a share that is a good one for the long term where you won't be negatively impacted from dividend cuts."
Williams said: "I'm going to be conservative and just say stick with Naspers. You've got a rand hedge there and you've got an asset in Tencent which is certainly going be a beneficiary from the changes we're going to see in consumption patterns and human behaviour. You get a 50% discount NAV, it's not a difficult decision to make and that to me makes a lot of sense."
Verster said: "My stock pick is a short-term insurer listed in the US called Progressive Insurance the share code in the US is PGR and they're almost like the OUTsurance equivalent in the US. Like I explained short term insurance is very low risk at the moment, people still pay their premiums so I think it's a share that is a good one for the long term where you won't be negatively impacted from dividend cuts."
Williams said: "I'm going to be conservative and just say stick with Naspers. You've got a rand hedge there and you've got an asset in Tencent which is certainly going be a beneficiary from the changes we're going to see in consumption patterns and human behaviour. You get a 50% discount NAV, it's not a difficult decision to make and that to me makes a lot of sense."