Alwyn van der Merwe, director of investments at Sanlam Private Investments (SPI) puts his head on a block and gives his top shares for 2012.

Anglo American is our top pick for 2012, with the company on the road to recovery, a balance sheet once again in good health, and a $70-billion 10-year project pipeline. The prospects for ample dividends over the medium term look good and its diversified portfolio of commodity-producing assets means that it is able to withstand the vagaries of the international market better than most mining companies. Most importantly the stock is cheap, with its P/E forecasts to decline to 6.33 times next year.

Naspers has been an investor favourite for years due to its exposure to key emerging markets and its attractive internet assets, like Tencent in China. The share price represents an attractive entry point for exposure to high margin/growth and market-leading internet/Pay TV platforms in relatively under-penetrated markets. We see Naspers offering inflation-beating returns over the next three to five years and it currently trades at a discount to net asset value of 33 percent.

Wilson Bayly Holmes-Ovcon (WBHO) also receives the thumbs up despite the local building and construction sector languishing in the doldrums. The order book of R18-billion, and its net cash of R2.8-billion add to the stock’s attractiveness. Balance sheet strength and an impressive order book, especially in Australian orders, make WBHO one of the premium counters in the construction sector. And it won’t only profit from its Australasian work as the company is also well positioned to benefit from activity north of our borders

Chemspec is expected to be the sprinter for the year. Since Ivan Clark, previously CEO of Grindrod, came to the rescue, Chemspec has raised R214.3-million via a rights issue and improved the balance sheet. Grindrod shareholders who backed Clark were rewarded with fantastic returns so it’s showing huge promise.

BKB Limited, from the over-the-counter market, is and one we view as a ‘potential jewel. We share Jim Rogers’ belief that agricultural land and food will be among the future’s most sought after commodities. BKB handles and markets agricultural products from wool to livestock, recently adding grain marketing and storage to its repertoire; and with the group trading at a discount net asset value of 69 percent, the share is materially undervalued.