This week's stock tips. - Christopher Gilmour gives his top 3 picks

Christopher Gilmour, Analyst at the Wealth and Investment Department at Barclays Africa gives his top stock picks for the week.

The first pick for today is Famous Brands.

This has been a phenomenal performer for many, many years...outgoing CEO Kevin Hedderwick took the business to fantastic new heights and he has now passed the baton on to a guy called Darren Hele who previously ran Wimpy and a number of other operations in SA...and it should be a seamless transition.

Christopher Gilmour, Analyst at the Wealth and Investment Department at Barclays Africa

Its growth has been dramatic and it is moving into Africa. Despite the fact that consumer spending has taken a beating, says Gilmore, Famous Brands is doing well.

There is a lot of down-trading at this point in time fast food and these guys cover the whole gamut from Tashas at the top end...to on a more prosaic level, operations like Steers and Dominos

Christopher Gilmour, Analyst at the Wealth and Investment Department at Barclays Africa

They have been remarkably successful with all their brands, except perhaps chicken, says Gilmore.

The second pick of the week is City Lodge which has been a fantastic performer, sayd Gilmore, since its inception in the 1950s.

It may have overcapitalised on building too many new hotels leading up to the 2010 World Cup - but Gilmore believes the Group is growing into their hotels. Occupancy is 69% and getting better.

With reduced government spending on civil servants hotel budgets, these 3 star hotels are getting a great deal of that business.

The final pick of the week is Spur.

Spur is more into what we call casual dining...I think they are going to do quite well as this economy languishes.

Christopher Gilmour, Analyst at the Wealth and Investment Department at Barclays Africa

People are down-trading from fine dining cuisine establishments.

Christopher Gilmour, Analyst at the Wealth and Investment Department at Barclays Africa

Gilmore observes that while Spur did go through a bit of a flat patch a few years ago, they have realised the importance of adding a new series of brands to the Group.

Panarottis is doing very well. And the real big success story is the acquisition of Rocomamas, which has tremendous growth potential.

Christopher Gilmour, Analyst at the Wealth and Investment Department at Barclays Africa

Recommended

by THE NEWSROOM
Read More
‘I’d get slaughtered for this, but I think it’s possible to rehabilitate Gigaba’

‘I’d get slaughtered for this, but I think it’s possible to rehabilitate Gigaba’

Bruce Whitfield asks Business Day Editor-in-Chief Peter Bruce to speculate on President Cyril Ramaphosa’s Cabinet.

JoJo - struggling to keep up with demand - now has a turnover of R600 million

JoJo - struggling to keep up with demand - now has a turnover of R600 million

The JoJo brand has entrenched itself in the psyche of South Africans. Bruce Whitfield interviews its MD, Grant Neser.

Bank of Baroda sets the record straight on Guptas and why it’s leaving SA

Bank of Baroda sets the record straight on Guptas and why it’s leaving SA

India’s 2nd largest bank was the last bank to still do business with the Guptas. Bruce Whitfield interviews the bank’s legal rep.

Why we celebrate a saints day with commercial things to show love

Why we celebrate a saints day with commercial things to show love

Valentine's Day is hundreds of years old, but some of the tokens of our love are quite new.

'Ajay Gupta says he owns no assets'

'Ajay Gupta says he owns no assets'

The Money Show’s Bruce Whitfield interviews Corruption Watch Executive Director David Lewis.

What we learned from the Steinhoff failure (SA's largest corporate scandal ever)

What we learned from the Steinhoff failure (SA's largest corporate scandal ever)

The Money Show’s Bruce Whitfield interviews Perpetua cofounder Delphine Govender.

Popular articles
I was not introduced to Ajay Gupta - Grootes

I was not introduced to Ajay Gupta - Grootes

Stephen Grootes says he believes former Eskom CEO Brian Dames when said he was not formally introduced to the Gupta family.

Minister Zwane confirms trips to Dubai and Switzerland

Minister Zwane confirms trips to Dubai and Switzerland

EWN parliamentary correspondent Gaye Davis says Mineral Resources Minister Mosebenzi Zwane received detailed and tough questions.

Vavi: I can't sleep at night for making Zuma the president

Vavi: I can't sleep at night for making Zuma the president

Zwelinzima Vavi says South Africa is paying dearly for choices they've made in being angry with Mbeki and not thinking logically.

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

The ANC treasurer-general confirmed Mantashe’s comments that the President did not consult the ANC leadership on the reshuffle.

Zuma is paying it forward and stacking the deck in his favor - Brown

Zuma is paying it forward and stacking the deck in his favor - Brown

Political analyst Karima Brown says the latest Cabinet Reshuffle is a move to strengthen his hand at the December conference.

"Duduzane Zuma is the Gupta family's greatest asset"

"Duduzane Zuma is the Gupta family's greatest asset"

Sunday Times journo Thanduxolo Jika who broke the front page story about the Gupta family emails vouches for their authenticity.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

"My earliest memory of money is my father saying, ‘Why do you want to do this thing? How are you going to feed the family?'"

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...