Stock picks Jan 2011

                   current        Price       Forward      Dividend
Share          price       Earnings        PE              Yield
Peregrine     11.70         9.50          8.14             2.68%
Basil Read   12.30         4.33          4.33             3.47%
Old Mutual  13.97        16.71         8.24             2.11%

These are the shares I would buy for 'n longer term portfolio. The only one which I would buy at a lower level is Old Mutual at round R13.20. They are all lagging the market and Peregrine will publish good results for Y/E 2011. Basil Read is cheap and when construction recovers in a year or two I would like to have this one in my portfolio. Old Mutual might benefit from corporate action.

Peregrine might go down to R11.50 which is a very good level and Basil might go to R12.20. If this should happen I would buy some more.

Later
G