Stock Watch: Stock Pick — Sasol

Wayne McCurrie from FNB Wealth & Investments and David Shapiro from Sasfin Securties both chose Sasol as their stock picks for the day.

McCurrie said: "David and I are joining forces for the first time ever and we are going to go for Sasol. It seemed as though the chemical prices have more or less bottomed out in America. Oil - who knows but it'll probably stay above $60 a barrel more than it's going to stay below $60 a barrel. They will make very positive cash flows, they are gun-shy now and will not spend this money. They are going to give it to you as a dividend when it stops coming and you know two years out this thing is easily single-digit price earnings ratio which is cheap over time, so yeah I mean you might have to wait a while but it's certainly on a longer-term view does look cheap.

Shapiro said: "The only warning shot is that with the weakness that we've seen recently I hope that it's not pointing to some of the further disappointment or something else happening. We don't know, because normally when you see the share price responding like that you know it's for a reason unless there's some people who are just abandoning it for for some
other reasons, or you know maybe foreign shareholders for whatever it's worth, but on the news that we know at the moment I think it looks cheap."
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