Devin Shutte from The Robert Group chose Fortescue Metals Group as his stock pick of the day and Meryl Pick from Old Mutual Investments chose Life Healthcare.
Shutte said: “I’m going for an Australian-listed iron or producer, it is risky, a single commodity producer called Fortescue. What I like about it is that it’s an ungeared balance sheet, it’s one of the top-four largest producers globally.”
Pick said: “I’m going for something that traditionally would be thought of as defensive, a hospital called Life Healthcare. In the Covid crisis, ironically, in the middle of a health-care crisis, it has not been good for hospitals. In some cases, surgeons and anaesthetists have just taken an active decision that they need to be on standby for Covid patients and therefore surgeries have been deferred, so I’m banking on that pent-up demand for elective surgeries to come back.”
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