MyMoney Online

Why Sasol is a great investment (it’s because of, NOT despite, the oil price)

(Also read the following related article: “Buy Sasol shares (despite very cheap oil)– market analyst”)

Oil is cheap and nobody, so it seems, wants to hold Sasol shares right now. After peaking at over R600 a share it now trades at around R440.

“I like it! It’s the market’s discomfort that’ll get you outsized returns,” says Lentus Asset Management Chief Investment Officer Nic Norman-Smith.

Ask yourself what the market hasn’t: Will oil stay cheap forever?

“Almost nobody predicted the large, sudden drop in the oil price. Yet now everybody is certain that it’ll stay at $60 for the next 20 years!”

Nobody really knows what the oil price is going to do, but the reality is a lot of the extra supply that has come on the market, such as shale oil and the Canadian oil sands, is expensive to produce.

“Oil is not about to disappear!” says Norman-Smith. “The electric car won’t become ubiquitous overnight.”

One of the cheapest oil firms on Earth

Sasol is one of the cheapest oil companies in the world. “The crashing oil price has hurt the Sasol share price a lot more than many of the global supermajors (BP, Chevron, ExxonMobil, Shell, Total)."

If you believe humanity will still be consuming oil for a while then Sasol is one of the cheapest entry points into this vital commodity.

Norman-Smith is also buying Grindrod and Anglo American. Listen to the audio to learn why.

(Also read the following related article: “Buy Sasol shares (despite very cheap oil)– market analyst”)


This article first appeared on 702 : Why Sasol is a great investment (it’s because of, NOT despite, the oil price)


Recommended

by NEWSROOM AI

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
Why women must be far more careful with their money than men

Why women must be far more careful with their money than men

Ray White talks to personal finance guru Warren Ingram, who reckons women should take financial planning more seriously than men.

Where to best save and invest so your children can one day go to university

Where to best save and invest so your children can one day go to university

#FeesMustFall, but don’t hold your breath. Take matters into your own hands to ensure a tertiary education, says Warren Ingram.

How to get a tax refund from Sars

How to get a tax refund from Sars

The Money Show’s Bruce Whitfield interviews Daniel Baines, author of “How to get a SARS Refund”.

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

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

Sasol shares are an excellent investment because of (not despite!) oil prices that won’t stay this low forever.

How to protect your wealth when the JSE is falling

How to protect your wealth when the JSE is falling

How to protect your wealth should the JSE start to weaken...

How to grow your bank balance (not your waistline!) with Burger King

How to grow your bank balance (not your waistline!) with Burger King

Grand Parade Investments, one of the JSE’s hottest shares, struck gold by bringing Burger King to SA, says Sanlam’s Gerhard Lampen.

Popular articles
Vila Kasi TV station leaves employees out in the cold with no pay

Vila Kasi TV station leaves employees out in the cold with no pay

Employees of the start-up media house are angered for not receiving salaries as promised at the end of June.

Nhlanhla Nene asks trade unions for ideas on how to fund wage increase demands

Nhlanhla Nene asks trade unions for ideas on how to fund wage increase demands

Nene asked unions representing Eskom workers to provide ideas to fund wage increases after negotiations with Eskom deadlocked.

How Steinhoff shares doubled in just five days

How Steinhoff shares doubled in just five days

Founder of Herenya Capital Advisors, Petri Redelinghuys, explains how the embattled Steinhoff managed to double its share price in 5 days

Parents no longer have to travel with children's birth certificates

Parents no longer have to travel with children's birth certificates

The new Home Affairs upgrades to the system include printing parents details at the back of the child's passport.

SA-made Rolkem cake decoration products may not be safe to eat

SA-made Rolkem cake decoration products may not be safe to eat

The UK’s Food Standards Agency issued an advisory, claiming that Rolkem failed to confirm that their ingredients were safe to eat.

Criminals targeting homes with aluminium windows, warns neighborhood watch

Criminals targeting homes with aluminium windows, warns neighborhood watch

The Panorama, Welgelegen and Plattekloof Neighbourhood Watch has identified a new house break-in trend.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.