The Cristal Challenge runs until October, with participants picking five local stocks (no ETFs or sub-20c stocks) to hold through the year.
Simon’s picks include a mix of stable “banker” stocks and speculative plays:
Richemont*:
- High-end luxury giant with strong fundamentals and global market appeal despite challenges in China.
- Trading near R3,500, with long-term potential boosted by luxury market recovery and stable global demand.
Shoprite*:
- Dominant grocery retailer in South Africa, benefiting from market share growth and diversified business lines like 60/60 delivery.
- A steady performer with consistent earnings growth and market dominance, trading at a PE of 24.
ADvTech*:
- Education sector leader, well-positioned to meet growing private schooling and tertiary education demands.
- Education giant trading below its historical PE average, supported by asset-light growth strategies.
Calgro M3*:
- Affordable housing developer, thriving on demand for low-to-mid-income housing in South Africa.
- Value pick with a PE below 3 and a focus on affordable housing, addressing a critical market need.
Purple Group*:
- Innovator behind EasyEquities, leveraging platform fees and expanded product offerings to drive revenue growth.
- Growth potential through EasyEquities' platform fees, rising customer base, and additional financial products.
Simon Brown
* I hold ungeared positions.
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