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

This article first appeared on 702 : This week's stock tips. - Christopher Gilmour gives his top 3 picks


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