MyMoney Online

Buy Sasol shares (despite very cheap oil) – market analyst

A share in Sasol, after peaking around R650, is currently trading just below R400. The oil price, according to Goldman Sachs, is heading to US$40 a barrel.

Why would anyone in their right mind invest in Sasol?

“I don’t agree with Goldman Sachs,” says Chris Gilmour, Analyst at Absa Wealth and Investment. “I think the oil price will bottom out a bit higher than that. And when that happens the rebound will be fairly swift. I’m not saying prices will recover to US$100 a barrel, or even US$80, but we’ll get back to US$65/US$70 without much difficulty.”

Gilmour points to a massive drop in oil exploration in the wake of the recent oil price crash and production levels that are already tapering off in higher cost areas. “It’s a self-correcting mechanism. If you go back to 2009; that rebound was very swift as well.

“When the oil price inevitably recovers; Sasol at around R300 will represent extremely good value,” concludes Gilmour.

Listen to the Soundcloud clip for more detail.

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
How accurate (or off the mark) stock pickers on The Money Show have been in 2017

How accurate (or off the mark) stock pickers on The Money Show have been in 2017

Bruce Whitfield grills three stock pickers he interviewed in January on the performance of their picks for 2017.

3 epic shares to buy right now (by Herenya Capital Advisors)

3 epic shares to buy right now (by Herenya Capital Advisors)

These are the three hottest investments you can make right now, according to Petri Redelinghuys.

3 best JSE investments in these recessionary times (by Truffle Asset Management)

3 best JSE investments in these recessionary times (by Truffle Asset Management)

The Money Show’s Bruce Whitfield interviews Truffle Asset Management Portfolio Manager Jonathan Du Toit.

Best offshore investments right now (according to PSG Wealth)

Best offshore investments right now (according to PSG Wealth)

Looking for a hot tip? The Money Show’s Bruce Whitfield interviews PSG Wealth Portfolio Manager Jonathan Fisher.

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Naspers is expensive, but geared for growth. Ashburton Investments’ Nick Crail on why you should just be brave and buy its shares.

4 beliefs about shares that keep you from growing wealthy

4 beliefs about shares that keep you from growing wealthy

4 popular, yet patently false, beliefs about stock market investing that's holding you back.

Popular articles
Guptas deny Bell Pottinger links in exclusive BBC interview

Guptas deny Bell Pottinger links in exclusive BBC interview

The family spoke via their spokesperson, Gary Naidoo who claims the Gupta's were not involved in pushing the 'WMC' narrative.

Is marriage overrated? Listeners share differing views

Is marriage overrated? Listeners share differing views

Relationship guru and sexologist Dr Eve says the notion of the 'marriage advantage' is being debunked by many couples and groups.

South Africans working abroad may be double billed for their taxes

South Africans working abroad may be double billed for their taxes

National Treasury is reportedly planning to repeal a tax exemption on income earned by South Africans working overseas.

Disgruntled client behind hoax email - MiWay CEO

Disgruntled client behind hoax email - MiWay CEO

MiWay CEO Rene Otto has described a bogus email, in which black clients are referred to as 'baboons', as "fake news on steroids".

#BlackTwitter roasts Tbo Touch for his homeless man comments

#BlackTwitter roasts Tbo Touch for his homeless man comments

Media personality Tbo Touch trended on social media after tweeting about a homeless man.

Earn peanuts? How to best invest very small amounts...

Earn peanuts? How to best invest very small amounts...

Got a spare R200 or R300 a month? Here’s how to make that money work hard and grow…