Stock picks — Fortescue Metals Group and Life Healthcare
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Devin Shutte from The Robert Group chose Fortescue Metals Group as his stock pick of the day and Meryl Pick from Old Mutual Investments chose Life Healthcare.
Shutte said: "I'm going for an Australian listed iron or producer, it is risky; a single commodity producer called Fortescue. What I like about it is that it's an ungeared balance sheet, it's one of the top four largest producers globally and I think particularly well positioned to benefit from the continuing upswing in demand from from iron ore."
Pick said: "I'm going for something that traditionally would be thought of as defensive, a hospital called Life Healthcare. In the covid crisis ironically, in the middle of a healthcare crisis it has not been good for hospitals. In some cases surgeons and anaesthetists have just taken an active decision that they need to be on standby for covid patients and therefore surgeries and things have been deferred, so I'm banking on that pent up demand for elective surgeries to come back."
Shutte said: "I'm going for an Australian listed iron or producer, it is risky; a single commodity producer called Fortescue. What I like about it is that it's an ungeared balance sheet, it's one of the top four largest producers globally and I think particularly well positioned to benefit from the continuing upswing in demand from from iron ore."
Pick said: "I'm going for something that traditionally would be thought of as defensive, a hospital called Life Healthcare. In the covid crisis ironically, in the middle of a healthcare crisis it has not been good for hospitals. In some cases surgeons and anaesthetists have just taken an active decision that they need to be on standby for covid patients and therefore surgeries and things have been deferred, so I'm banking on that pent up demand for elective surgeries to come back."
