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Transcript:

I haven’t changed my view on the outlook for the global economy. I still think we are in a stagnating phase so I don’t think there is a great deal of upside in the equity markets and the market in general - I think at this stage it’s looking rather full - but I do think that if markets were to start pulling back I’d be looking for opportunities to pick up Tiger Brands from R173 down but preferably under R170 it would start looking quite attractive largely on the back of some of the crop failures we’ve seen in Europe and specifically in Russia in wheat. That’s going to have a significant impact on the price of wheat and other grains and that should flow through into their margins in time and I think that will help them out - but I think it’s limited to Tiger Brands. Pioneer Food Group will be a beneficiary of the higher food prices as will the cash food retailers for that matter Pick n Pay and Shoprite but they are just looking a bit full at current levels. At the moment I think Tiger Brands is the most attractively priced.

Broker:
Rudi van der Merwe at Standard Financial Markets

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