Any thoughts on Sasol? Share price looking very shaky right now. Standard Bank Equities research say Sasol is likely to be downgraded to junk and they could very likely suspend divided for 3 years - all of this due to their disaster in America. Apparently Sasol's long term ROI forecast on this project(zero profit!) is based on long-term chemicals prices, not current prices, and chemical prices are more sticky, up and down, than oil price, so any recovery in oil prices ain't going to help Lake Charles project. In fact, Standard Bank's downbeat assessment is based upon a recovery in oil prices to $70. So it sounds as if Sasol is a disaster even if oil recovers to $70, and it will be a lot worse if it doesn't. Any contrarian thoughts?
The oil price will have to recover significantly before Sasol becomes a BUY again (at least above $80). If the oil price DOESN'T recover and the Rand strengthens, watch out below. This could get extremely ugly.
Haha. 10 Year Plan? Mate, then everyone will be driving around in electric cars and Sasol's fuel division won't exist anymore. So it depends at what price you value their chemicals division (like the R165 billion Lake Charles plant that isn't forecasted to make any profit...)