Sasol won't be in buying territory for long!
by Gavin McCarter, Senior Portfolio Manager, Prodigy Asset Management, 08 January 2019
2018 was a wild year for investors as almost everything except cash produced negative returns. Brent crude was down 19.5% for the year, sending Sasol back to where it started the year after staging a spectacular rally above R580.
The R400 support level has proven to be a strong support level, which buyers have defended.
Take a look at the chart below.
The Oil price has stabilised with renewed optimism around Trade Talks and OPEC signalling supply cuts to curtail price weakness we should see a strong rebound in crude and this will support a rally in Sasol’s share price.
The company fundamentals are also getting stronger. On 21 November2018, Sasol released a positive trading update for the interim period until 31 December signalling HEPS increasing between 12% and 29%. And EBITDA to increase between 10% and 30%.
With Lake Charles nearing completion after $9.8 billion of the $11.13 billion CAPEX, earnings should start to benefit from the 1.5mtpa ethane cracker and 6 downstream chemical units. It’s expected to contribute between $250m and $300m to EBITDA in full year 2019.
Investors who accumulate below R430 will be rewarded as the share pushes back to R460 and ultimately back above the R500 level.
Buy SOL below R430.00 with an interim target of R460 and longer-term target of R580.00. Investors looking to enhance returns should consider derivatives to gear up returns.
________________________________________
Sponsored Advertisement
Trade from anywhere on any device!
Used this Direct Market Execution system to trade Shares, Commodities, CFDs and Forex from one account in Rand.
Go to: www.protrade.co.za
________________________________________
Rate this article
Note: 3.58 of 6 votes
- Warning, this is NOT for "regular" people
- How to collect 32 extra salaries this year
- Major breakthrough for the frustrated home-Forex trader!
- The PERFECT part-time trading plan
- When was the last time your bank balance went up BETWEEN pay days?
- Become a property developer and landlord with a single investment
- Meet the man who revolutionised the JSE
- Welcome to your five MINUTE work week
- The laziest way to make an income from property explained
- How you can profit from perception
- NB! Public Announcement - Please READ!
- Keep your hands off my pension
- Bottom fishing with Wescoal
- "What the heck happened to Aspen and where is it going?"
- How to identify a company with sustainable dividend pay-outs
- Bottom fishing or catching a falling knife?
- South Africa vs the World
- As May fails again, what's next for the UK?
- What is Net Asset Value - and what does it tell you about stocks?
- Bank a 489% profit from a rise in Gold
- Why you should invest in these two stocks in 2019 if you want to double your income!
- Our three VIP Trader Services and which is best for you in 2019
- Sasol won't be in buying territory for long!
- Find a mentor or learn to trade on your own? Warren Buffett has the best advice…
- Should you avoid stocks in 2019?
- A guaranteed 20% return in 20 days from this JSE share
- Why I believe the Rand strength will be short lived and how you can profit from the falling Rand
- A “Retirement Plan B” you can't ignore!
- Use this simple strategy to make accurate Soccer predictions
Related articles
- Bottom fishing with Wescoal
- Bottom fishing or catching a falling knife?
- Buy EOH as it bottoms out ahead of results
- Buy Firstrand before it rallies 9.2%
- Is South Africa about to turn into a major oil and gas producer?
- A guaranteed 20% return in 20 days from this JSE share
Watch And Learn
Trending Topics
- Don't Invest in Bitcoin
Until you read this - Why I think these four shares could make 2018 the most profitable year of your life”
- Double your money in 2018
Claim your free Investment report now... - “Double your money in the next 90 Days or we'll pay you”
- This South African Listed company could generate savvy investors a 125% return this year alone
© 2019 FSPInvest.co.za. All rights reserved.
Contact UsPrivacy PolicyOur ProductsAbout UsDisclaimerOur ShopWelcome To Trading TipsWelcome to Money MorningEvents CalenderWelcome to FSPInvest
Contact UsPrivacy PolicyOur ProductsAbout UsDisclaimerOur ShopWelcome To Trading TipsWelcome to Money MorningEvents CalenderWelcome to FSPInvest
Disclaimer
Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.
© Copyright 2019 Fleet Street Publications (Pty) Ltd. Registered in SA No: 1999/019170/07, Vat No: 4430185282
Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.
© Copyright 2019 Fleet Street Publications (Pty) Ltd. Registered in SA No: 1999/019170/07, Vat No: 4430185282
powered by
Fokus Digital Services
Fokus Digital Services