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2017 stock picks: Why Paul has his eye on Transaction Capital

Steinhoff is the second pick for this year – Paul Chakaduka – trader, GT Private Broking .

SIKI MGABADELI:  It’s stock-pick time. We put all our market commentators on the spot at this time of the year, to find out what stocks they would put money on – they are not putting money on it, I promise – but just if we had to threaten them to do that.

I’m about to threaten Paul Chakaduka right now. He is a senior trader at GT Private Broking. Paul, thanks for your time this evening, and a happy new year. I can’t remember if you played with us last year and if you picked any stock, so I can’t put you on the spot. But I want your two stock picks for 2017. Let’s start with Transaction Capital.

PAUL CHAKADUKA:  Good evening, Siki. Ja, Transaction Capital is a bit of a switch. I really didn’t have an eye for it over the last couple of years. It’s essentially a non-deposit-taking financial institution which basically lends money in the taxi industry in South Africa. And essentially all they do is borrow money in the wholesale market and go out and identify potential taxi operators on certain routes. And also they then evaluate using very, very good models to determine the revenue that these taxis can make. And from there they determine the risk profile of those operators. So this is a business that’s done phenomenally well. A lot of people didn’t give them a chance, especially in the sector in which they are operating, and they’ve done extremely well.

On top of that, they are now expanding into various areas. I think the main focus point now is their risk portfolio, which in November acquired a business in Australia. I think in the next couple of months and years we should start seeing more results coming out of Transaction Capital.

SIKI MGABADELI:  All right Paul, we are out of time, but I know your second one is Steinhoff. In fact on Tuesday Maudi Lentsoane also picked Steinhoff. So we’ll be watching those two. Thanks for your stock picks this evening.

Paul Chakaduka is a trader with GT Private Broking.

 

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Siki – I believe the listeners and readers would like to hear what Paul has to say. You were not fair to him in this interview!

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