Market Wrap - Stock pick — Anglogold
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Steven Schultz from Momentum chose Anglogold as his stock pick of the day.
"I'm going to stick with my conviction and my scepticism on the market and elect for Anglogold. Markets have clearly gotten ahead of themselves even if they don't want to admit it. I think the SA rand strength that we've seen over the last eight trading days and as well as a little bit of a softer US dollar gold price is creating a nice entry point. I think Anglogold is probably the stock pick of the gold mining sector. It currently trades at about R412 and our internal target price is around R550 so some decent upside. And, even if I'm horribly wrong and the world is a rosy place and expect monstrous inflation coming through in the next couple of months in which case gold is again a useful asset."
"I'm going to stick with my conviction and my scepticism on the market and elect for Anglogold. Markets have clearly gotten ahead of themselves even if they don't want to admit it. I think the SA rand strength that we've seen over the last eight trading days and as well as a little bit of a softer US dollar gold price is creating a nice entry point. I think Anglogold is probably the stock pick of the gold mining sector. It currently trades at about R412 and our internal target price is around R550 so some decent upside. And, even if I'm horribly wrong and the world is a rosy place and expect monstrous inflation coming through in the next couple of months in which case gold is again a useful asset."
