The Cristal Challenge is running until October, inviting participants to choose five local stocks to hold onto throughout the year. There’s a catch, though: no ETFs or stocks priced under 20 cents are allowed.
Among Simon’s selections, you’ll find a blend of reliable “banker” stocks and more daring ventures:
Richemont:
This high-end luxury behemoth boasts solid fundamentals and has a worldwide appeal, even with some hurdles in the Chinese market. Currently trading around R3,500, it has promising prospects, boosted by a rebounding luxury market and steady global demand.
Shoprite:
As the leading grocery retailer in South Africa, Shoprite is capitalizing on increasing market share and a diverse range of business lines, including their 60/60 delivery service. It’s a consistent performer, demonstrating steady earnings growth and market dominance, with a price-to-earnings ratio of 24.
ADvTech:
A frontrunner in the education sector, ADvTech is well-positioned to cater to the rising demand for private schooling and higher education. This educational heavyweight trades below its historical price-to-earnings average and is bolstered by its asset-light growth strategies.
Calgro M3:
This affordable housing developer is thriving due to the demand for low-to-mid-income housing in South Africa. It’s a value pick with a low PE ratio of under 3, focusing on affordable housing to satisfy a vital market need.
Purple Group:
The brains behind EasyEquities, Purple Group is driving revenue growth through platform fees and an expanded selection of financial products. Its growth potential lies in the platform fees from EasyEquities, an increasing customer base, and a variety of new financial offerings.
Simon Brown
P.S. I have unleveraged positions in these stocks.
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Breakdown of the Cristal Stock Picks for 2025
- 00:00 Introduction to Crystal Stock Picks
- 00:29 Overview of the Crystal Stock Challenge
- 00:57 Detailed Examination of Richemont
- 04:09 Insights into Shoprite’s Market Position
- 08:25 ADvTech: The Future of Education Investment
- 10:20 Calgro M3: Housing Market Insights
- 13:40 Purple Group: Innovations in Financial Services
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