Stock Watch - Stock picks — Alviva and Shoprite
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Mia Kruger from Kruger International chose Alviva as her stock pick of the day and Graeme Körner from Körner Perspective chose Shoprite.
Kruger said: "My pick is Aliva, SA's largest IT provider. They're a small cap, a value play and they are a trading at a price far below their value. They managed to stay cash-flow positive and profitable during covid and we think that this is a small company that does have upside in the South African economy."
Körner said: "I'm going with Shoprite and I think they've done so much good, they've positioned themselves very well within e-commerce, obviously they've taken pain in parts of Africa more recently. Their forward earnings to June was around R8 which reflects a difficult time but if I fast track a year out I can easily see them deliver R9 to R9,50 as things start to normalise."
Kruger said: "My pick is Aliva, SA's largest IT provider. They're a small cap, a value play and they are a trading at a price far below their value. They managed to stay cash-flow positive and profitable during covid and we think that this is a small company that does have upside in the South African economy."
Körner said: "I'm going with Shoprite and I think they've done so much good, they've positioned themselves very well within e-commerce, obviously they've taken pain in parts of Africa more recently. Their forward earnings to June was around R8 which reflects a difficult time but if I fast track a year out I can easily see them deliver R9 to R9,50 as things start to normalise."