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SASOL and windfall tax

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Super Contributor
Hi Guys, With the budget coming up in the next week, i am getting a bit nervous abou the windfall taxing of Sasol, what is the general feeling about this, will Sasol be taxed, i don't know if the government needs it, but maybe they think they can rake up some cash for the 2010 projects, i truely hope not. But i see it was basically end September/October 2005 when Sasol started its sideways trading, and ended the very nice upward trend, what was the reason for this, could this have been when the windfall tax was first announced, i cannot remember the first public announcement of this event, can anyone enlighten this, maybe we can resume some trend if the budget results comes out satisfactory for Sasol. what is your views?
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12 REPLIES 12
Valued Contributor
sol windfall tax was first annouced during the feb 2006 budget in and sol lost some 8% on the day.
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Super Contributor
Sol's PE says it all
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Super Contributor
Thanks Simon, So that means it started it sideways moving before the windfall tax was an issue. What do you guys think will happen, will they get taxed, i don't want it to happen, but somehow i think it will, government needs to accumilate cash to spend on infrustructure etc...
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Super Contributor
Simon: I have some SOL SSF's and don't know if i should get rid of them before next week's budget or not, what would you do? Thanks in advance, i am watching the market but think they will be taxed and then down with the price...
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Not applicable
Not sure about Simon, but i know if there's one rule you stick by is if you are uncertain get out or atleast decrease your risk and take profits. OMO
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Super Contributor
Thanks Ozone, i am thinking of the same...
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Regular Contributor
I would be more concerned about Exxaro and Mittal! Sasol has other triggers from which you can make a profit or loss....
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Valued Contributor
Werner, I can't help with exits firstly from a legal point but more importantly I don't know the tarde. Your exit must be defined before you enter; are you looking for a target, a trailing stop, an announcement, a fixed stop, a date, etc.

It's always important to decide this before you get in otherwise exiting becomes a very painful experience.
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Super Contributor
Thanks Simon, i do have some sort of plan, and in addition i decided to see what this week has and get out before the budget, will make about 20+%, i presume that is better than nothing... But thanks Simon, i will make a point of making the plan better in the future!
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Super Contributor
I have seen that a lot of time the news leaks before the event. Just look at share prices before a big announcement. A lot of them will move before the new breaks. I would watch SOL very carefully the last few days before the speach. If anything feels off, then reduce your risk or exit completely.
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Super Contributor
thanks for the advice, if today is a good day, i might get out asap!
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Highlighted
George_1
Occasional Contributor
I'm not expecting a great increase in the 6 months to Dec 06 results as the comparable period last year included the huge spike in the oil price (Tsunami, Gulf etc etc). The share could be wary because of Trevor Manuel AND the results. Buy after both are out of the way.... I could be wrong....
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