Petri Redelinghuys, founder of Herenya Capital Advisors, provides analysis on a few picks for BusinessDayTV.

Sasol (SOL)

We have been very bullish on Sasol for some time now, and we still maintain this view, even through recent geopolitical events and the downgrade by JPMorgan. We have seen Sasol take a bit of a dip, but we only see this as an opportunity to get on board with what we believe is a longer-term trend change.

We have seen Sasol come out of an extended long-term downtrend. We now see consolidation, and we think this will go higher over the next few years. R94 is a major support level and provides a good entry point to trade the swing and go long.

Gold Fields (GFI)

Anglogold is what we meant to look at, but we ended up talking about Gold Fields, which is a stock that has a firm upward trend that is reaching new highs, just the same as the commodity it mines, so it seems for now that the sky is indeed the limit.

People often say don’t chase a stock, wait for an opportunity, and while that is absolutely good advice, we have seen this stock break past its previous level of resistance. We are in uncharted territory, running off a dynamic that is very much news-focused, which is filled with a myriad of different reports fuelling uncertainty. This ends up aiding gold in its rising price.

We recommend this stock, but be safe about it, set up a two-day trailing stoploss.

Uranium (U.UN)

Thanks to the recent innovations with A.I. and their data centre needs, we are seeing a spike in the price of uranium. The investment case for uranium is very simple: technology is evolving very quickly, and as the power demand increases, people are looking for an efficient source of energy.
Green energy has a strong backing, but we can already see in the case of vehicle manufacturing that it is not really that great in terms of efficiency.

Solar and wind are great in personal instances like our homes, but perhaps not on an industrial scale. For an industrial or national scale, we primarily look to oil and uranium, and we view uranium as the cheapest, most sustainable source of energy because it is incredibly efficient while also being a rare resource. The best way to invest in uranium would be to go offshore, and we do offer a couple of different options for this.

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