5-Star Stocks Poised to Pop: Sasol

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Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, South African purveyor of CTL (coal-to-liquid) and GTL (gas-to-liquid) technologies Sasol (NYSE: SSL) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Sasol's business, and see what CAPS investors are saying about the stock right now.

Sasol facts

   

Headquarters (Founded)

Rosebank, South Africa (1950)

Market Cap

$27.9 billion

Industry

Oil and Gas Refining and Marketing

TTM Revenue

$13.2 billion

Management

CEO Patrick Davies (since 1997)

CFO Christine Ramon (since 2006)

Competitors

Chevron (NYSE: CVX),

Dow Chemical (NYSE: DOW)

CAPS members bullish on SSL also bullish on

Chesapeake Energy (NYSE: CHK),

Transocean (NYSE: RIG)

CAPS members bearish on SSL also bearish on

Kodiak Oil & Gas (AMEX: KOG),

Cimarex Energy (NYSE: XEC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 413 of the 416 All-Star members who have rated Sasol believe the stock will outperform the S&P 500 going forward. These All-Star bulls include TMFBreakerJava and ResearchLover, both of whom are ranked in the top 10% of our community.

In November 2007, TMFBreakerJava wrote that Sasol is a "[d]ominant player in coal to liquid technologies. This is one of a number of key technologies that will help the U.S. reduce its dependence on oil from unstable and potentially hostile parts of the world."

A more recent pitch by ResearchLover in June of this year shares that bullish attitude, highlighting the stock's weakness as being a possible buying opportunity:

Down significantly with broader EZA (South African) market on no direct news, and its coal-to-fuel process is a great growth story. Which suggests the question, would a temporary drop in the world supply of coal (interrupted by midwest floods) hurt their margins along with all the other inflationary pressures in South Africa (e.g. 27% rise in electricity)? It is possible, if not likely, but my gut says "not as much as has been taken off the top."

What do you think about Sasol, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Sasol is a Motley Fool Global Gains and Income Investor recommendation. Dow Chemical is an Income Investor pick. Chesapeake Energy is an Inside Value selection. Try any of our Foolish newsletter services free for 30 days.

Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

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Related Tickers

11/24/2009 3:17 PM
XEC $45.77 Down -0.03 -0.07%
Cimarex Energy Co. CAPS Rating: ****
KOG $2.42 Down -0.06 -2.42%
Kodiak Oil & Gas C… CAPS Rating: ****
RIG $85.52 Up +0.52 +0.61%
Transocean, Inc. CAPS Rating: *****
DOW $28.05 Up +0.08 +0.29%
The Dow Chemical C… CAPS Rating: ****
CVX $79.14 Up +0.40 +0.51%
Chevron Corp CAPS Rating: ****
SSL $40.06 Up +0.52 +1.32%
Sasol Limited (ADR… CAPS Rating: *****
CHK $23.58 Up +0.38 +1.64%
Chesapeake Energy… CAPS Rating: *****

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