Sibanye Stillwater and Bidvest
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Meryl Pick from Old Mutual Investments chose Sibanye Stillwater as her pick of the day and Nesan Nair from Sasfin Securities chose Bidvest.
Pick said: "The PGM stocks have all pulled back over the last quarter, and one that I find intriguing is Sibanye Stillwater. I've been quite critical in the past of the Stillwater deal and they've proved me completely wrong. Maybe the rest of the market is very skeptical and hence it's lagged but if you look on spot PGM and gold prices, it's sitting at a 29 free cash flow yield for the next set of financials. And you get a good mix of commodities and optionality."
Nair said: "I'm going with Bidvest, I think it's been flying under the radar for quite a long time now. I do see a South Africa post covid-19 and I think the big industrials, particularly Bidvest are very well geared up because of the amount of cash that they have on their balance sheet to take advantage of the opportunities that are inevitably going to come their way."
Pick said: "The PGM stocks have all pulled back over the last quarter, and one that I find intriguing is Sibanye Stillwater. I've been quite critical in the past of the Stillwater deal and they've proved me completely wrong. Maybe the rest of the market is very skeptical and hence it's lagged but if you look on spot PGM and gold prices, it's sitting at a 29 free cash flow yield for the next set of financials. And you get a good mix of commodities and optionality."
Nair said: "I'm going with Bidvest, I think it's been flying under the radar for quite a long time now. I do see a South Africa post covid-19 and I think the big industrials, particularly Bidvest are very well geared up because of the amount of cash that they have on their balance sheet to take advantage of the opportunities that are inevitably going to come their way."
