Business Day TV Daily Stock Picks (July 2023)
Business Day TV Daily Stock Picks (July 2023)
FirstRand, Naspers/Prosus, Netcare Limited, Life Healthcare, Aspen Pharmacare, Mondi, Sasol, Kumba Iron Ore, City Lodge, Anglo American, Standard Bank, Richemont, AngloGold Ashanti, DRD Gold, etc.
Business Day TV is South Africa's most watched business news TV channel who does short (usually 1-3 minutes long) Daily Stock Pick video pitches mostly about South African stock picks (this post won’t cover any USA based ones, but does cover their other non-South African picks).
Stocks featured in their July Daily Stock Pick videos (from newest to oldest) and covered in this post include:
Quilter PLC and Super Group Ltd; FirstRand; Naspers/Prosus; Netcare Limited, Life Healthcare Group Holdings and Aspen Pharmacare Holdings Limited; Grindrod Limited; Hyprop Investments Limited and Absa Group; Mondi; Super Group; Attacq; Sasol; Motus Holdings, Combined Motor Holdings (CMH) and Zeda; NEPI Rockcastle;SA Government Bonds & Artificial Intelligence (AI); Pepkor; Kumba Iron Ore and City Lodge; Anglo American; Standard Bank; Richemont, AngloGold Ashanti, Anglo American PLC and Impala Platinum; Adcock Ingram Holdings Limited and Sasol; DRD Gold, Hosken Consolidated Investments (HCI), Equites Property Fund and Kap Ltd; Thungela Resources and LIG Nex1 Co; & Italtile
As detailed in our May 22nd post and mentioned again in our June Business Day TV stock picks post, South Africa is more or less facing “state collapse.” However, the private sector and civil society are well positioned to take up the slack and are already doing so (e.g. by going off the grid, taking up government roles like fixing potholes, etc).
This also means opportunities for both local businesses and for investors. For example: It looks like the University of South Africa (Unisa) will be placed under administration.
As public education further deteriorates, the following listed South African education stocks are well positioned to benefit:
Stadio Holdings (JSE: SDO): An Asset Light Distance Learning Model Pays Off
Curro Holdings (JSE: COH / FRA: 24P): Performing Significantly Better After Expanding Too Quickly
ADvTECH (JSE: ADH): Becoming a Pan-African Education Business
I also recently exchanged email messages with someone who runs a financial blog focused on Africa who told me:
The SA stocks are interesting, my stockbroker is sure they are due for rerating due to the quality earnings, as you say, and the wide African (and international) exposure in their earnings.
Some US and other investors in Africa ex SA use their SA brokers and custodians to make the link into other African markets, while brokers such as Auerbach Grayson in New York and Imara offer links in many markets. Where several brokers are involved. The brokers often share commission. I am not sure how onerous are the documentation requirements to set up custodian (for funds) or stockbroker requirements. Some countries make moving money in and out very easy, others are harder.
It would be interesting to update previous people’s work (the last I saw was about 10 years ago, when “Africa rising” narrative was in flavour) on how much effort is needed to set up as a retail investor in different countries. Most funds in UK and Europe treat most of Africa as too high risk for individual investors so they restrict minimum investments.
However, I do need to mention this recent controversy that was all over Twitter:
I am not South African and have never lived in or visited the country albeit I have met more than a few current and former South Africans and Zimbabweans… Its hard to have an objective opinion about this - other than to say that foreign investors need to keep an eye on South African politics and the 2024 elections:
Getting back to Business Day TV’s South African stock picks and to make your life easier, this post includes:
A quick description of the stock pick with links to the IR page and stock quote(s) on Yahoo! Finance.
A link to any Wikipedia page (for what it might be worth…)
The title of the Business Day TV Daily Stock Pick video and their very brief summary of who is making the pitch.
The embedded video (again, they are usually 1-3 minutes long).
Forward or trailing P/E and dividend yields linked back to the Yahoo! Finance statistics page.
The latest long term technical chart linked back to Yahoo! Finance.
And as always, this post is provided for informational purposes only (and to make your life easier by providing you with relevant information, links, and charts). It does not constitute investment advice and/or a recommendation…
UPDATE: Circa late October or early November 2023, and without any explanation, the Business Day TV YouTube channel was terminated. The YouTube channel contained separate individual videos with just the few minute long stock picks without the need to watch the whole show (Note: The stock picks were usually during the last few minutes of the show) they were from (although the whole shows would be interesting for anyone investing in South African stocks). The Business Day TV website still contains the entire shows in video and/or podcast format.
Quilter PLC and Super Group Ltd
Quilter PLC (LON: QLT / JSE: QLT / FRA: 2FQ0 / OTCMKTS: QUILF), formerly known as Old Mutual Wealth Management Limited, is a leading UK centric wealth management business, providing financial advice, investment solutions and wealth management to customers in the UK and selected international markets. The stock has a secondary listing on the Johannesburg Stock Exchange (JSE).
Super Group Ltd (JSE: SPG / FRA: S8G1) is the holding company for leading global online sports betting and gaming businesses: Betway, a premier online sports betting brand, and Spin, a multi-brand online casino offering.
Super Group’s leadership team are betting, gaming and technology pioneers with decades of industry experience. They are responsible for a global workforce of more than 3,500 colleagues in 17 countries.
WATCH: Stock Picks - Quilter PLC and Supergroup
Jarred Houston from All Weather Capital chose Quilter PLC as his stock pick for the day and Ricus Reeders from PSG Wealth Riumsig chose Supergroup
Forward P/E: 13.04 / Forward Annual Dividend Yield: 5.92% (Yahoo! Finance)
Trailing P/E: 7.92 (no forward P/E) / Forward Annual Dividend Yield: 1.81% (Yahoo! Finance)
FirstRand
FirstRand (JSE: FSR / FRA: FSRA / OTCMKTS: FANDY) through its portfolio of integrated financial services businesses, operates in South Africa, certain markets in sub-Saharan Africa, the UK, and India.
WATCH: Daily Pick - First Rand
Robert Towell from Sasfin Securities Group chose First Rand as his stock pick of the day
Trailing P/E: 11.60 (no forward P/E) / Forward Annual Dividend Yield: 5.23% (Yahoo! Finance)
Naspers/Prosus
Naspers (JSE: NPN / FRA: NNWN / OTCMKTS: NPSNY) is a global internet group and one of the largest technology investors in the world.
Prosus (JSE: PRX / AMS: PRX / OTCMKTS: PROSY / OTCMKTS: PROSF / ETR: 1TY) is a global investment group that invests and operates across sectors and markets with long-term growth potential. It is majority-owned by South African multinational Naspers.
WATCH: Daily Pick - Naspers/Prosus
Martin Smith from Anchor Capital chose Naspers/Prosus as his stock pick of the day
Trailing P/E: 9.54 (no forward P/E) / Forward Annual Dividend Yield: 0.20% (Yahoo! Finance)
Forward P/E: 15.90 / Forward Annual Dividend Yield: 0.18% (Yahoo! Finance)
