Stock pick — Old Mutual
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Imtiaz Suliman from Sentio Capital chose Old Mutual as his stock pick of the day.
"I'm going with Old Mutual is a quite a large company and they were impacted quite significantly from the hard lockdowns but, subsequently we've seen a rebound in consumer activity - the reopening of the economy. They've also made significant provisions for the Covid mortality deaths and I think if that comes in as expected in terms of their modelling assumptions you could see quite a significant release of those provisions as well as a the rebound in economic activity and they could make the earnings number that they did in 2019, two years out from now."
"I'm going with Old Mutual is a quite a large company and they were impacted quite significantly from the hard lockdowns but, subsequently we've seen a rebound in consumer activity - the reopening of the economy. They've also made significant provisions for the Covid mortality deaths and I think if that comes in as expected in terms of their modelling assumptions you could see quite a significant release of those provisions as well as a the rebound in economic activity and they could make the earnings number that they did in 2019, two years out from now."
