Stock Watch - Stock picks — BAT and Shoprite
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Ricus Reeders from PSG Wealth Sandton chose British American Tobacco as his stock pick of the day and Deryck Janse van Rensburg from Anchor chose Shoprite
Reeders said: "British American Tobacco, I think it's resilient, I think where I was previously very negative my view on that has changed. This is because there's been a fundamental change in how the world operates and how it will operate afterwards so at least for the next year or two years I think they are reasonably protected as far as tobacco is concerned, the consumption of that and also change consumer behaviour."
Janse van Rensburg said: "I'm going to play in the retail space and pick Shoprite, this is certainly my preferred pick at this stage. I think just looking long-term of 3-5 years it's certainly traded at much higher multiples than where it is now. If we are able to navigate our way through the corona virus pandemic from a local perspective I think this is a stock that will lead us out of the bear market that we've been in at the moment. So really it's a 3-5 year view, I'm happy to R11 a share and stick it in the portfolio and just be patient."
Reeders said: "British American Tobacco, I think it's resilient, I think where I was previously very negative my view on that has changed. This is because there's been a fundamental change in how the world operates and how it will operate afterwards so at least for the next year or two years I think they are reasonably protected as far as tobacco is concerned, the consumption of that and also change consumer behaviour."
Janse van Rensburg said: "I'm going to play in the retail space and pick Shoprite, this is certainly my preferred pick at this stage. I think just looking long-term of 3-5 years it's certainly traded at much higher multiples than where it is now. If we are able to navigate our way through the corona virus pandemic from a local perspective I think this is a stock that will lead us out of the bear market that we've been in at the moment. So really it's a 3-5 year view, I'm happy to R11 a share and stick it in the portfolio and just be patient."