bearing in mind of course that a sinking tide drops all boats....I would seriously look at waiting before getting long of anything right now...esp something in the resources sector. I would wait till the market becomes oversold before going long of anything....although oversold and overbouht conditions should never be used as decison making tools as an entry in my opinion. What i am saying is that risk to the downside is elevated and that there will be a less risky time to buy.
true, but somethings are inversely correlated and others not at all correlated to the market. E.g. Markets down APN up, same with DSY. Havent quite figured out the balance with this yet as some days market movements have almost 0 effect on stronger shares. Currently Im of the opinion if you see the structure on that share go for the play, but this might change with more experience.
Looking seriously at sasol again bought at R338, so up 4% now to R353. The graph seems to be trending upwards, div normally declared around Sept. PE at around 7.5 ! div at about 4!. if oil price remains same around current mark and in long term I think this share is very good value even at R350? Also collect hopefully on good div in Sept. Thinking of buying on monday. Anyone agree with this assessment?
With winter in the northern hemisphere just around the corner, I don't see much downside in the price of crude, besides, with the current drought in USA pushing maize to records high, there has to be less production of energy (ethanol) from this source.With an earnings yield of 12% and a D E of 4 at these levels beats money in the bank.Somehow I think those holding out for 320 could be in for a long wait.
I would rather buy SOLBE1 - this is currently trading at R255. It is the BEE share but the same rights as the SOL share (get same div etc) and in 2018 will convert to a normal SOL share. if you are a value investor - then why not tale up the R100 discount via the Bee share but get the same rights as a normal SOL share.