SA­SOL

Finweek English Edition - - INVESTMENT - Curro Pri­mary School

Ne­san Nair, a port­fo­lio man­ager at Absa As­set Man­age­ment Pri­vate Clients, says that he continues to favour the in­vest­ment case for this en­ergy com­pany de­spite a strong run-up in the last 12 months. In a note to clients he wrote: “From an in­vest­ment per­spec­tive, Sa­sol trades on a 9 times for­ward P/E and 4% for­ward div­i­dend yield, mak­ing it rel­a­tively in­ex­pen­sive com­pared to some of the other larger SA blue-chip com­pa­nies even af­ter tak­ing into ac­count its 45% re­turn in cal­en­dar year 2013. It has the de­sir­able in­vest­ment char­ac­ter­is­tic of inf la­tion linked earn­ings since its rev­enue stream is linked to both the rand dol­lar ex­change rate and the Brent oil price, both of which are key driv­ers of do­mes­tic inf la­tion. With this out­look, Sa­sol re­mains a sub­stan­tial hold­ing in our pri­vate client portfolios.” low­ing the re­lease of full-year re­sults to De­cem­ber 2013 and the an­nounce­ment of a ma­jor rights is­sue. Com­ment­ing on mi­cro-blog­ging site Twit­ter, Clark said that the rights is­sue was smaller than ex­pected and he was a “happy share­holder”. but iden­ti­fies other ways for in­vestors to cash in: “We also hold Fa­mous Brands, which in­di­rectly ben­e­fits from more trav­ellers and tourists in the coun­try. Within the stats they state that camp­ing and car­a­van­ning were up a whop­ping 51.1% for the month. Hold­sport should ben­e­fit from that kind of growth. Let’s hope this growth car­ries on at these strong lev­els, I sus­pect it will.”

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.