Share Shoot Out, Richemont, Barclays Africa, Aspen, Steinhoff, Imperial Holdings, Visa,

share shootout brought you by line of africa insurance ensuring South Africa’s future welcome to the spanking news still scheming conniving and downright vicious stock-picking show on television I’m Bruce Whitfield and this is the set of the all-new share shootout league right here on CNBC africa first in business worldwide now will President Jacob Zuma pay for the fire pool and settle ease fringe benefits tax from SARS what if I put it to you I put it to you that the fire pole really is just a fire pool and the cattle culvert is just an emergency exit we can explain anything from the valley to the pinnacle of course that if you gave to bribe a cop lesson number one try to find one with the morals of a fire pool apologist now we don’t know the answers to you they’re complicated and highly illogical questions that we ask on the show but we do know we have a man who has absolutely no friends it’s just got family really shame poor guy let’s check out our first contestant on the all-new share shootout League death check out bucks by for action my name Alexander nourishing thats ash’s thoughts alexander call me sir sure speed everything from answering the phones until yes I’ve heard of that come to attending to client email to you know make payments everything we like to honor our infant because when someone friends strangely they want to be strapped ignore lots of the noise in the short term by the quality and stick with it for as long as possible get inside Bruce’s here just to try and confuse him as much as possible yeah and act like I care outrageous this board is pathetic I’ve never seen such a useless board when of course it’s someone else’s pick yes that’s how I think I’m going to work yeah but you mustn’t tell my competitors Warren Buffett no I’m kidding has to be Bruce with you a way too clever for everybody on the show so I can beat him I’ll be happy I just need a beat Bruce then I think I winless team yeah we’ve got 40 weeks to prove his mettle I don’t know if he has got what it takes I’ve noticed you we’re reading a Warren Buffett book there wasn’t mine I didn’t know they came in sort of like comic sans with pictures and now that was my colleagues the end said the Warren Buffett way I’d actually read it on a thing called a kindle before because I haven’t bought a book in about six or seven years are you so doomed on the show so dear Sagittarius cure from best actors going head-to-head with a man who was once a billy bowden in disguise here is maverick said via hello I’m an independent investment analyst & investment advisor I like looking at themes I devised themes to suit the particular investment climate and I tried investing in companies which fit into whatever theme i believe is appropriate for the for the business cycle at any one particular time at this point i don’t have a game plan this is the first time i’m in the competition and i would say i would probably end up devising a game plan as we move along and as i get a feel of how things are developing at this stage I would simply say a setia simply because is the longest-serving member on the on the team and he is a very experienced than very successful investment advisor in his own right I wouldn’t have entered if I didn’t think I had a good or a reasonable chance of winning it at the end of the day it is a game and we all here to have fun but deep down we all want to win it so sit there hello the independent analysts how do you fancy their chances how do you fancy your chances against the man whose name we only mentioned quietly Sasha because he is so ferocious and so scary and so experienced in this game said so what oh he’s got the spirit of the game we’re ready no you know what he may be the Incas no Sofia no because it’s your first time we’re going to be very nice to you and we’re going to make Sasha play first so we got to have households you need to know the house rules because they’ve changed ever so slightly what happens is that both guests of pre big three shares neither knows what the other holds but they must accept at least one of their competitors stocks and the longer they leave it the more likely it is that they’d have to accept something they really don’t like each has got 30 seconds to argue their stock back from the top shares on the JC but in a new and quite dramatic twist we give each one of them weekly and offshore allowance now they are allowed to dabble globally too so now that you know the house rules let’s get started and partly because I’ve been stripped of my divine right to go all the Egyptian and order mass executions for decisions I don’t like that power in the spirit of democracy is now in your hands you decide who wins this match I think it’s terribly unfair but that’s apparently

what democracy is all about all about so I need you to go on to twitter to follow at SS o League and vote either four bucks or maverick at the end of the show please to decide who should be the winner of this round you’ve got it you’ve got it said you you you with the program it is your first time we’re going to make Sasha teach you how it is done sort of good um Sasha I would like to know in 30 seconds please yes played this game I feel to you or the camera you speak to me usually to me because then them’s the rules it’s about me Sasha oh this shows all about you it is about it at their part Anna excellent as long as you understand that we gonna get on the famous that you are not very ruthless time not this time although our tweet of viewers I think you’re very realistic don’t hurt the viewers don’t assault the viewers the viewers may get back at you ok Sasha no risk you from best act in 30 seconds I would like to know why you like oh sorry yes sir why you like Richmond Richmond yes Bruce I’ve like the stock several times you always say it’s expensive ironically at this time it’s probably at the bottom end of the range since you know we’ve had the ability to be able to buy them here in South Africa in their purest form at brands of that quality you cannot replicate ensure we’ve seen a slowdown in China as a result of austerity but you’ve seen Europe bounce back quite quickly and i think in essence when you want to earn the majors you want to earn the pure players you want to earn the people who self jewelry and you want it there we go and wallets and ties and adrics and accrediting here we go all right and shotguns a very do extract put a shotgun shotgun yo did you see now have you found respect familiar Rupert I was gonna stand up straight now as I speak about it there’s not a lot to like about richemont it’s a phenomenal company their brands are phenomenal purdy shotguns are magnificent if you’re into that kind of thing it is a way to share worth buying SID it’s a hard one because I happen to own the share myself I thought I said he owns a purdy shotgun education i know that i do earn the same [ __ ] but you know depending on our time horizon and in the current circumstances i’m not entirely sure that I’d want to buy the share right now and that is I think they will come a time in the future that maybe I’ll be able to pick up to share a pretty much the same price which trading currently which means that there’s a lost opportunities and that’s that’s the only reason why I don’t think that I would want to put new money into richmond right now it is a great business it has got great brands but remember they are you know there are certain categories where they haven’t had success I mean in China for instance it may not just be watches yeah leather goods for instance have turned out to be one of the big winners in China and maybe one maybe an investor we want to look at something like Prado something like that I need to I need to challenge also rather than Richmond I need to challenge Sasha on this the opportunity cost thing is interesting I so we saw you paging through the Warren Buffett book and we saw you sort of internalized Warren Buffett’s philosophies are buying really good quality companies and holding on to them for the long term harvesting the dividends and enjoying the capital well in this case the dividend is a bit of an issue because the Swiss government keep 35% so the next time you there is a rush Montreal the jump on a bus in Zurich yeah but you do cake for it already know that you can get the you do get a big chunk of it yeah but it’s war what’s its point about the opportunity cost fair point it is a fair point but I think in the cycle this is probably the cheapest that I’ve seen rushman since you’ve had available you know since you’ve been able to buy the business as a pure-play you know because Johann Rupert was really smart he stuck the cigarettes business in there and said there you can have this business and we’re at it on a luxury model even though you had the cigarettes part this side but wait a minute wait a minute the best time two aborted in would have been four years ago at 15 Rand well 15 or even three years ago when there’s 28 tracks I take it in a big difference between 28 and 102 or we never have a few times a hundred i take i take I’ll take it said you’re shooting it down not because you don’t like the company but because they are simply too expensive and the opportunity shutting it down because I think on an opportunity cost basis there may be other opportunities we are going put my money now to get a better return doesn’t mean it’s a bad business correct okay your shot down on that one session ends at say obviously thinks that he owns it and he’s only for a long time and he bought a cheaply setia so you stick to the rules of in this occasion that’s it I’m images in your first pick Curtis even because it is one of the least favorite shares in its sector because your thought I was going to select a retail shape probably not only you didn’t I did it then I I had I got size of your shares but he has an interesting pic because it is the least favorite in it sector it’s not JD grip or african bank it is in the banking sector in our 30 seconds I would like to

know why you like the Barclays after the group 30 seconds start now very simply Barclays is at the bottom the trough in terms of its share price movement but let’s consider what they’ve done up to now and what’s what’s going to drive the earnings going for more than twenty percent of the earnings not comes from Africa I’m a great fan of the African theme and I think that the businesses in Africa they bought that they didn’t stop them yesterday many of them are more than a hundred years old and a big exposure to East Africa where I think a lot of the growth that’s going to happen to the guests and what have you that’s professor 30 seconds are up you see the cuts off their game is that was the first thing unfortunately we don’t get to hear the second keep a powder dry on that particular point if you want the Africa exposure that you do standard bank rather than Barclays session no I think you know and I’ve heard it argued that Barclays kind of was looking for one entity one tradable entity and I think that was a good move on their part to be able to take all those businesses and find one currency one place the only criticism I have of Barclay is perhaps that their management team aren’t as strong as the other banks in south after they have bolstered the Barclays Africa team they’ve got Craig bond in there who’s got it says bond James Bond Alec Craig box but he’s got in there gone what did you guys be doing for the last four years and he’s gone in with a great big banking enema it’s a horrible image and I’m really sorry for that but it’s appropriate and he’s cleaning up that’s the other part of the story excellent are you Canadian and the third part of the story is they took action seemingly earlier than everybody else and it cost them in journey in the shortest lost the money but they’ve taken the pain a lot of other of the competitors I think are still going to take the pain on the bed cycle all right I need to know session whether or not you like parties Africa enough to buy it I think you you guys at Best Actor allergic to banks anyway you don’t mind putting your wads of cash in the bank we did order by the shares as a whole I just want to correct everyone when we talk about the Africa story I’m reminded that South Africa has Africa in its only is it I mean don’t think about from an international investor point of view if you’re sitting overseas you don’t care whether South Africa considers themselves the rest of africa or not but i think having put it all into one tradable entity in a liquid market and i think they have lagged the other half leg no you’re headed their peer group I’m gonna go with this one what no no listen give me up it’s something because I think listen listen let’s load this right here see only what you want my wife remember now she shouts much louder breeze I think a price performance point of view it’s probably gonna do better than their peers and I think you know how we know where the interest rate cycle is this one is different yes this one is different because there was action because there was you know a little bit of heat on emerging Marco so buggies Africa you will accept I’ll giga by 26 guns in my sling your first pick on the show has been accepted by session even yeah you haven’t seen a wonderful your next to Pixar because he may be obliged to accept your legs as well oh yeah yeah we’ll see we’ll see ok Sasha de-risking from best act I’m interested in your next pick as well it suffers unfortunately from the same disease as your first pick in that it has had an enormous run it has been fantastically successful it is one of South Africa’s greatest export since sabmiller in 37 mins and Richemont in 30 seconds I want to know why you still like Aspen because I think there in terms of minds see as Steven sod who still 12.1 percent yield of this business still has lots of legs you know I mean and they’ve been in acquisitive mode and I think those are going to feed through to earnings over the next two years in a bigger way than people anticipated asia-pacific business is now a third of all profits so you know and that’s a region where you want to be in where it’s been under the serviced and I think essentially it’s a it’s a demographic story so where people are I didn’t hear the bank well I heard it and your time is up I’m afraid I’m aspen lovely company lovely story wonderful chief executive people tell me he travels on calluna calm to durban back no private I can change and of course and I can also tell you where you went on holiday in December because I I was at the same place and rich people rich people that weather girl and it was and it was a very inexpensive place to go to where was that we were to be conniving okay and he was there with his whole family it was a family holiday and one thing he told me because I did ever checked him two things which is what the first thing he said leave me alone i’m on holiday no no no no no no no it wasn’t as bad as that citizen more famously he joked he joked about the situation with the government contracts you know which I under pressure now because the because

the wii grand and you said you know that ultimately that’s actually more than and he said it publicly as well it’s more than offset by what I gain every time the range appreciate them turn to the conversion of my foreign earnings so at the end of the day the government eventually compensates me so that one comes back to normal it kind of normalize in any event but I still get the benefits of the weak currency and you got to give him credit for doing those things it’s a hard one to shoot down but like reach like reach mode it’s a hard once you done because of the quality well because of the quality but the second issue and it is something that worries me we have to take this into account in deciding whether I’m going to shoot it down or not they’ve taken on a gigantic a dar Norma’s amount of debt huge amounts of debt the data is also foreign all that probably doesn’t matter if its domestic goods foreign but in a rising interest rate scenario which is which is going to start in America I mean Janet yellen’s already told us about it and it’s it’s obviously started here and you’ll hear this afternoon whether it’s going to go further or not or winner it’s going to go up in a hurry or not I think it’s coming later that nonetheless in a rising interest rates Nuria the cost of their debt could become prohibitive okay now i need to give sasha an object you want to the interest rate in question because we need to have I think it’s fair but they’ve proven that you know I mean we’re not talking about a retailer here that sells food we’re talking about very expensive life-saving life-saving admittedly generic therapies but they’re high margins so very cash generative and able to pay that debt down maybe a lot quicker than normal businesses are are you taking us or are you shooting your dad’s if you don’t mind I don’t know bearing in mind there’s nobody here how many year the third one as well no you can’t you the third one you have to either send as a third reason I don’t have a good time for a third reason we haven’t got time for a third reason except or shoot it down no I had a look I had a look at another thing in this this issue of cash flow and I was a little bit worried about what I saw and that’s the reason why I’d shoot it down you should get out yeah I have to let you down blazing all guns blazing you shot it down so what you have done so far said I’m so young I’ve shot down respond and Aspen which means you have to take stock pick number three regardless of whether you like is all Norwich bearing in mind taking the gamble if bearing in mind it may be local or it may be global because megan has your officer alum taking taking the gamble taking the gamble session or iskcon he’s playing the game he’s strategic you have accepted Sevilla Nellas first pick which is Barclays Africa I’m interested now said and you try to convince Sasha that stock pick number two is also worthy of being accepted I like this one it is one that you would know very very well because of its various interests with into the retail sector new made a career at a retail analysis can be 30 seconds on steinhoff possible if very simply when Spanish was started understood the companies are go back a long time it was a furniture manufacturer in 15 years he’s transformed it into the second largest furniture retailer in the Western world after he care the other thing is done he’s recognized that margins are all important in the industry and he’s shifting the focus away from low margin products particularly France into a high-margin product and he’s expanded his business in Germany to 30 any good 30 seconds are up it’s a great story setting the standard story the transformation I didn’t know that you listed it adobe you know you know the background deeply do you really want to go up against him on the sensation it’s a good thing they didn’t buy a JD group of 95 around her it’s a swamp so sometimes it’s better to be unlucky and because they did put they did with the aged and it was a chase swap as well and their shape price was trading work lucky living or 12 r ends at that time and that would have been dissolved it on a P of about five or six yeah yeah and they always have been perpetually cheap the standoff no no well it’s it was it has been perpetually cheap but the P has now gone over 11 as the share prices moved you know because the ship has gone up a lot yeah so there is until you in September last year when the results came out with steady rains what are we six months down the line the share price is not over 50 so you’ve had a seventy percent price appreciation in what six and a half month you helping as I should build he is he gets it hahahahaha yeah I mean yeah I think if the European recovery story was a large pot of that move up suddenly people were believing there had gone from an era of believing that Greece and Spain and maybe even Germany would you know shunt themselves out of this fabulous team and to an era of believing inclusiveness and in fact we’ve seen one entrant in the form of Latvia this year into the EU and Poland

have stuck their hand up and said we want to be part of you now you know sir European recovery story is in full flat but again it’s sometimes placed to a demographic story so now we’re worried that people in Japan are getting older and older with a sell more adult diapers than baby diapers in Japan the demographic story in Europe is also a little bit tricky so how much cheap furniture can you have I think the share price has gone too far just in conclusion so I’m going to shoot it down you shoot you down on that basis if any other than a bottle in this particular court I’m afraid lovely business just like which wants a lovely business it got shot down as well whether you sold a maverick or on bucks whether you think they stop here or should be stopped here we don’t discriminate on at share shootout league at SSO League that’s where you follow us on Twitter make your thoughts count by voting for your most convincing stock picker by using their hashtags join us on the flip side of the ad break to see who slays who will get the new dog with some old tricks or will bucks justify his reputation the answers on the other side of the break please don’t go anywhere we need your votes just like idols without the funky music or the singing which is good with these guys this is share shootout League the only league that does not but under any circumstances accept bribes well we don’t accept bribes in cash but other things are very welcome you’re watching CNBC africa thurston business worldwide remember this is match day number one and you could see the log standings right behind me nobody’s registered for a match or a point yet but these two stock pickers will change all of this before the break Sid and Sasha both gave us two of their stock picks and thus topics of course this evening if you have a look at session or ish giving their stack response and Aspen both have been shot down with a vengeance Sasha’s got one pic left to convince Sid that he’s a good stock pick up in symbian LOV independent analyst chose Barclays Africa and steinhoff Barclays Africa accepted standoff shot down simply because it is up already sixty or seventy percent in the last six months now the referees additional time now so no holds barred as we get into the last topics of the evening remember you need to vote for either hashtag maverick or hashtag bucks maverick is syd bucks is Sasha you’ll get used to it and a gag also the show goes by the twitter handle at SS o league it’s complicated but you’ll get the hang of it and of course when you want your favorites to win you’re ready sit there voting extensively and the vote incidentally is completely free right cynthia another you win second last night which means you go first this time now go first i would like you please to tell me or 30 seconds why it is the dura big fan of imperial holdings 30 seconds now very simply i accept that motor distribution the hand eyes or whatever you’re going to be in trouble I accept that motorcar retailing is going to struggle that they’ve got a phenomenal transport business the weaker and gives Europe car rental a great future and most importantly they’ve lacked direction since the death of local Lynch and now now we have mock Lambert iam I have of the ultra respectful Lamberty is going to drive their business and their part we’re going to leave it such you’ve got 30 seconds to robots yeah it’s a business I think that everybody knows really well I mean you would have seen the announcement from transnet on the build-up of the railway infrastructure that’s why a lot of local logistics company have done fabulously well they really have because it’s been rubbish because Johnson it’s been rubbish so what is this next move I think its a 50 billion rand rollout of rolling stock I don’t know I don’t know where that’s going to put those businesses because what if what if Transnet actually get it right five ten years from now well yeah the thousand rolling stock doesn’t even come anywhere near the 4000 that apparently we’ve lost over the last 20 odd years we are they all but session you don’t care be sure you ladies out anyway yeah I’m just saying I mean traditionally and sort of knows as well just on evaluations basis a lot of these stocks used to trade on very cheap multiples it is because it was very sickly this GTG like Imperials cheap again yeah like maybe may I did yeah I just don’t think the earnings are going to be as aggressively as people are focused if it was up to me said you’d be winning this competition but as I don’t have the right to choose what we leave it up to we leave it up to our viewers I think you should vote against Sasha tonight everybody i really think you do because he’s making a pitiful argument against Imperial okay so you should you tell how take it you and I follow me on twitter follow you back at all sunk up nobody likes a second are you trying to tell me I’m understand when she joined Twitter yeah absolutely I left I lost my son altitude will complicate it for me

we can ask Bruce Ely 20,000 followers or 50 to 52 sorry I must leave it there so you should shot him down and you’re taking your offshore allowances evening you are you’re taking online your solo in 30 seconds I’d like to know why you put that offshore allowance into credit cards visa 30 seconds it’s not credit card it’s a payment processing and the MasterCard CEO said nine out of every ten transactions globally is still cash so where would you want to be from a regulatory point of view they would want to do where do you remember checkbooks I had a look at mine the other day through the way back in the PAL then to file 13 or whatever but I’m just saying huge margins in this business you know they got an operating profit margin of 64% lap 3 I think I’m going to need it there we go 30 seconds or almost absolute you got 30 seconds to either accept a robot you have to accept and I have no I have no problem accepting it whether it’s visa whether it’s MasterCard whether it’s American Express I like them all for exactly the same reason they are great business I took a gamble but i think my Gamble’s with i like i like the call okay there we can be radical you’re accepting the call session to risk in you live to fight another day so who do we say should be the winner on this particular show I no longer get to set people are on fire and that’s a big problem so you’re either go for Sid who goes by the hashtag maverick or you go for Sasha who goes by the hashtag bucks have they done enough to win the Twitter vote this evening that is the big question that only you can answer so you go on to twitter com will tally up the votes until midnight on Sunday and until then thank you so much to watch and get your friends to vote because sasha has no friends he’s only got family members and he’s got no standards so whoever gets the most votes wins and he’ll follow you back so we have no standards on the show yet follow at SSO diga at the same time as we say that we will be more credible than the IEC join us right here on CBC I forget excuse their half past eight from a ch2 when two of our nine stock pickers will be making changes to the log it’s going to be a grueling 40 weeks with the most remorseless stock-picking show on television will also show the league tables next week as to who won and who lost between Sasha and Sid this evening as well at Asus Oni Press reports on the facelift until next week stay coming good night