Stock Watch

Stock Watch - Stock picks — Capitec and Aspen


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Nesan Nair from Sasfin Securities chose Capitec as his stock pick of the day and Graeme Körner from Körner Perspective chose Aspen.
Nair said: "We all know the condition that banks find themselves in, all of them have had to mark down profit substantially because of higher impairments in other words, higher provisions for future losses, and Capitec was no different. But, Capitec has levers and the last few result sessions you've actually been seeing this insurance income coming through, they never sold credit life before and now they've started it and it seems that whatever they touch turns into gold."
Körner said: "I'm going for Aspen, their debt is manageable and under control. When I looked at their results we projected a year ago what we thought this business could do and they delivered. Not only have they attacked the debt but I think also there's a new energy and there's a clinical approach to the business. The fact that the share price has been marked down, we must concede that September was a horrible time for markets and people are getting skittish."
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