Stock Watch - Stock picks — Afrimat and Cisco
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Independent Analyst Chris Gilmour chose Afrimat as his stock pick of the day and Devin Shutte from The Robert Group chose Cisco.
Gilmour said: "I'm sticking with the stock pick I've had for the past two or three weeks and that's Afrimat. I think the fundamentals are still very much in place if you look at the iron-ore price that keeps on rising, it's going nicely and as I say they're mining the iron-ore ata way lower level, way below where the current share price of iron-ore is at the moment."
Shutte said: "I'm going for a traditionally hardware provider called Cisco systems. What they have done is very nicely transition their revenue which in the last reporting period has now just exceeded hardware and that software. They have very nice annuity revenue coming through, they've been cutting costs massively and have a really robust balance sheets with no debt sitting on it. Their return on invested capital is above 20% and at 14 historical earnings, it's not priced like a big tech stock due to its historical hardware view so we think it's a great opportunity and there is a yield on the stock as well."
Gilmour said: "I'm sticking with the stock pick I've had for the past two or three weeks and that's Afrimat. I think the fundamentals are still very much in place if you look at the iron-ore price that keeps on rising, it's going nicely and as I say they're mining the iron-ore ata way lower level, way below where the current share price of iron-ore is at the moment."
Shutte said: "I'm going for a traditionally hardware provider called Cisco systems. What they have done is very nicely transition their revenue which in the last reporting period has now just exceeded hardware and that software. They have very nice annuity revenue coming through, they've been cutting costs massively and have a really robust balance sheets with no debt sitting on it. Their return on invested capital is above 20% and at 14 historical earnings, it's not priced like a big tech stock due to its historical hardware view so we think it's a great opportunity and there is a yield on the stock as well."
