Any thoughts on if SASOL shares should be sold or should one hold. Inclined to sell part of my holdings.
Sitting with the same problem/question.
For me personally I have the following problem:
- Sasol due to massive increase in share price over last 12 months resulted in the value of the share comprising +/-34% of my total portfolio
- On last update, I was anticipating better results and the resumption of the Dividend which also was not forthcoming
I think (personal opinion) that SAUDI will start to release oil reserves soon and this will bring back oil, on average closer to $90 a barrel for the next 12 months.
If the oil price comes down Sasol will come down. Personally I think Sasol has a higher chance to fall R100 per share that gaining another R100 per share.
I am looking at selling Sasol and investing the proceeds in Redefine (REIT) after the 8th of March (Redefine corporate action) for the following reasons:
Taking 1,000 Sasol shares as an example at R400 per share equating to R400,000 capital.
If Sasol resumes dividends and hoping for R20 per share you can generate R20,000 in dividends tax free. And if Sasol goes up another R100 per share you can generate another R100,000 in proceeds.
One can purchase +/-93,000 Redefine shares with R400,000.
Last dividend paid was R0.60 per share = R55,800 after tax R36,270 (working on 5% effective tax rate as it is a REIT dividend) so exceeds potential Sasol dividend.
I personally think looking at the last result presentation and shar price history that there is a fairly good chance of this share increasing by R4 over next couple of years which means a potential proceed increase of R372,000 compared to Sasol's R100,000 increase on fairly over valued share at current price.
I was hoping Sasol will get to R420 per share today cause this is what I would be selling this and following my crazy idea as set out above.
Sasol currently at R393. Will see where it goes today and tomorrow.
Any other investment ideas for everyone's Sasol profits???