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Cape Town - In response to Kirk Swart's share picks, Fin24 users have weighed in with their own stock market preferences.
READ: SHARE WATCH: Food firms in play in 5 stocks to watch
Graham Rudings writes:
The choices are interesting, but my comments on your picks are:
Grand Parade [JSE:GPL] started in casinos and are now into foodstuffs. They have vacillated for years, not knowing what they wanted to do; I bought at 63 cents but eventually sold out at R1.05 when they remained directionless. The recent purchases may make something out of the counter but if they do, it is going to be at least two years before you see any value coming through the share price.
I purchased Taste Holdings [JSE:TAS] as a more preferable counter, but it too will take time before it ramps up serious value. Also, I think their management is more switched on and are acutely aware of the fast food markets within which they play, compared to Grand Parade.
Though Quantum Foods [JSE:QFH] may be seen as a long-term play, I have preferred AVI Limited [JSE:AVI] for years basically because of the brands in their stable.
The JSE Limited [JSE:JSE] I am hesitant about, especially if this other crowd gets a licence to operate and exchange
Woolworths [JSE:WHL] I hold and have ever since Allan Grey said sell – I also bought a parcel of Pick n Pay [JSE:PIK] as they seem to be getting over their lacklustre performance while under Nick Badminton.
So just some of my thoughts. My choices would have been Woollies, Taste, PnP, AVI and Bidvest.
Derek A Harris shares the following insights:
I agree with Kirk. I've been holding Grand Parade (BEE) before they listed on the JSE and it turned out one of my success stories. They are trading well below the sum of the parts.
I'm holding and accumulating more.
Similarly, I hold MTN Zakhele [JSE:MTMZBE] which should unlock value later this year after listing on the JSE BEE board last year. Despite the problems experienced by MTN [JSE:MTN], I believe Zakhele holders will be well rewarded for their patience. I bought at R20 per share.
The rising oil price should bode well for the Nigerian economy and the lifting of sanctions against Iran is another silver lining.
Similarly, Sasol's [JSE:SOL] Inzalo-funded scheme [JSE:SIPBEE] listed on the JSE BEE board last year. I bought at R18/share. The oil price is ticking upwards and the exchange rate is favourable for them. In addition, they are more of a chemicals player these days.
YeboYethu the Vodacom BBBEE share scheme could turn out to be a ten-bagger for patient holders. Vodacom [JSE:VOD] seems to be on the right track and not beset with the problems of MTN.
Naspers' [JSE:NPN] BBBEE scheme for MultiChoice, Phuthuma Nathi, allowed me to bank a 2 000% return already. I remain invested for the medium term for the mouthwatering dividend. DStv will compete directly with Showmax, which will impact negatively on DStv in future.
Then there's Naspers' Welkom Yizani BBBEE scheme for Media24 and Novus Holdings [JSE:NVS]. It's paying a dividend but not doing as well as Phuthuma Nathi in terms of capital appreciation. Bob van Dijk appointed a top man to jack up Media24 's e-commerce business. I am nibbling patiently at it.
Ukhamba Holdings, the Imperial [JSE:IPL] BBBEE vehicle, is a long-term play and I'm happy to nibble at it for now.
Disclaimer: The above article does not constitute financial advice and is not a recommendation. Investors must always seek the advice of professionals and trade with caution. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.
