SASOL Shares Crash!

SHOOT: I bought shares recently, when Sasol was trading between R270 and R290. That was around May when Oil prices were bumping over $60. Subsequently SASOL went over R315 and looked ready to go to R320. But then I gained some insight into these climbs. SASOL moves as oil moves, and oil's movement was more due to dollar fluctuations (oil is expressed in the US$ currency) than due to fundamental demand. So I sold at about $307. Guess where SASOL is now? Below R300. Below R290. But long term, SASOL is always going to be a good bet. Right now, any speculation is going to be dangerous, and the chance of losing your shirt is high. Unless you're brave enough to speculate with Pharmaceuticals.

clipped from www.businessday.co.za Sasol said in a statement it expects attributable earnings per share and headline earnings per share for the year to fall by between 40 to 50% compared with the prior year, mainly due to lower crude oil and chemical prices. Sasol said the earnings were also punctured by fines paid to the European Commission and the South African Competition Commission over cases relating to anti-competitive practices. Sasol warned its estimated full-year earnings may be further hit by the price of oil, the impact of a much stronger rand, additional impairments as well as other financial adjustments. News of the earnings forecast sent Sasol’s stock tumbling. The shares fell 4,54% to R284 this morning — the biggest fall on the JSE Top-40 index (.JTOPI), which was 0,31% lower. Headline EPS, the main profit gauge in SA, strips out certain one-off and non-trading items.