Market Wrap - Stock Pick — Netcare
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Robert Cameron from Thebe Stocbroking chose Netcare as his stock pick of the day.
"My stock pick is Netcare and it's more a trading stock pick and not a long term hold. I thinks there is still a lot of headwinds in the South African hospitals space but at the moment there are some technical factors that has driven the Netcare share down sharply. First of all their CEO sold around 200 million rands worth of shares and they are about to exit the Top40 Index so a lot of those tracker funds are having to sell off on their holding in Netcare. Their financial results however that came out earlier this month was quite decent. Their dividend was up almost 7% and they increased their headline earnings slightly. It's not expensive and one should keep it for 10% to 20% on the upside, get the dividend and then maybe just bank your profits."
"My stock pick is Netcare and it's more a trading stock pick and not a long term hold. I thinks there is still a lot of headwinds in the South African hospitals space but at the moment there are some technical factors that has driven the Netcare share down sharply. First of all their CEO sold around 200 million rands worth of shares and they are about to exit the Top40 Index so a lot of those tracker funds are having to sell off on their holding in Netcare. Their financial results however that came out earlier this month was quite decent. Their dividend was up almost 7% and they increased their headline earnings slightly. It's not expensive and one should keep it for 10% to 20% on the upside, get the dividend and then maybe just bank your profits."
