Smalltalkdaily 2024 top stock picks

Independent Analyst at Smalltalkdaily, Anthony Clark, has revealed his top small and mid-cap stock picks for 2024 in an exclusive interview with CNBC Africa. Clark, who delivered an impressive 11.5% return on his top stock picks last year, outperforming the small-cap index by almost 6%, is back with a fresh set of recommendations. The key theme of his stock picks this year revolves around overlooked and undervalued companies with potential for significant growth. Let's delve into each of his top stock picks for 2024 and understand the rationale behind them. Clark's wildcard pick for the year is Lipstar, the underperforming food producer on the stock exchange. Despite being the worst-performing food stock in the last five years, Clark sees potential in Lipstar due to its portfolio of well-known grocery assets, which have attracted interest from private equity and value players. He anticipates a possible acquisition or breakup of the company in the next 12 months, driving its stock value up. This contrarian play by Clark highlights his strategic approach to identifying opportunities in undervalued stocks. Moving on to AshTol Foods, Clark sees a lucrative opportunity in this cyclical business due to the recent decrease in maize and soya prices, key input costs for the company. With substantial cost savings expected to boost profitability, Clark foresees AshTol Foods swinging back into profit in the second half of the year. At a discounted stock price, Clark estimates a target price range of 175 to 200, making it an attractive investment option for growth-focused investors. Clark's top pick, Afrimat, has been a favorite since September, driven by favorable conditions in the iron ore and construction materials sectors. With a significant uptick in production expected in its anthracite operations, Afrimat is positioned for a substantial increase in profit in the coming months. The impending Lafarge deal and strong commodity prices further reinforce the growth potential of Afrimat. Clark believes the market has not fully priced in the earnings uplift, making Afrimat a value investment at its current trading price. In the education sector, Clark highlights Curo as a top stock pick, emphasizing the company's focus on improving profitability and margins. With consistent earnings growth and strong performance in the education sector in 2023, Curo is poised for continued success in 2024. Clark's bold price target of 1,600 cents reflects his confidence in Curo's ability to deliver strong financial results and capitalize on sector-wide growth trends. Despite his bullish outlook on these stock picks, Clark acknowledges the risks posed by global and domestic economic uncertainties, particularly in the lead-up to the upcoming elections in South Africa. Political instability, volatile currency movements, and geopolitical tensions on the global stage could impact the performance of these stocks. To mitigate these risks, Clark has chosen defensive and resilient companies with the potential for capital protection and growth. As investors navigate the evolving market landscape in 2024, Clark's strategic stock picks offer a blend of value, growth, and risk management.