Sasol's Worth a Look

Some of our readers have been asking for us to highlight some interesting companies that they could study in more detail. We plan to start a series of short posts that will give you a quick overview of some companies we feel are worth looking into.

Sasol (SSL) is an integrated oil and gas company with substantial chemical interests and production facilities in South Africa, Europe, North America and Asia. The group operates commercial scale facilities to produce fuels and chemicals from coal in South Africa and is focused on developing ventures internationally to convert natural gas into clean diesel fuel.

One of the main issues in the increase of oil prices is the actual refining capacity but what is interesting in the case of Sasol, is that the product offer doesn’t need any additional refining capacity. Furthermore, the company is extremely profitable, pays a good dividend and is able to fund growth internally.

Within the context of the current energy crisis, a company like Sasol - with synthetic fuels, natural gas / oil, coal mining and chemicals - is definitely going to be worth studying!

Please read our disclaimer.

Comments

[epeon:]

Duh?? Although it is possible that synthetic oil from coal might, sometime in the future, become profitable; it is certainly not profitable now. As long as oil is less then $70/bbl, why would you have the slightest interest in synthetic oil?

Bottomline: SSL is going nowhere until crude is above $70/bbl. And, if you are going to bet on that being the fact, why bet on SSL? Much easier to just buy a major oil company. They are all depressed and can be had cheap right now.

Feb 05 02:18 PM

[claudio.lan...:]

That is what makes the market g around. Posting buy epeon is that example. Does anyone believe oil is going to stay at the current prices? I for one do not. If SSL is a buy when oil is above $70/bbl
then the time to buy it is not when oil reaches that strike but now.
Meanwhile, your receiving a great dividend while you wait.
Don't forget the patented technology that SSL incorporates. I personally see nothing wrong with taking a position in this stock.

Feb 06 11:23 AM

[Enterprisin...:]

the idea is to look at the company now and decide if it's time to take a position instead of waiting for it to be at all time highs... not an outright buy recommendation, just putting some ideas on the table...

Mar 10 02:21 PM