I bought EZA for a few different reasons:
- the move up after the drop, apparently because of the impact of the dollar
- the mix of sectors and companies appeal to me: (from Fidelity)
Top Ten Holdings as of 12/31/2004
Standard Bk Grp Limited
Sasol Ltd
MTN Grp Ltd
Old Mutual
FirstRand Ltd
Sanlam Ltd
Impala Platinum Hldgs Ltd
Anglogold Ashanti Ltd
Gold Fields Ltd
Telkom SA Ltd
56.45% of the portfolio
Total Holdings: 46
--------------------------------------------------------
Major Market Sectors (%) as of 12/31/2004
Media 3.02
Telecommunications 10.95
Healthcare 0.75
Consumer Services 8.37
Financial Services 34.30
Consumer Goods 9.26
Industrial Materials 33.34
- I wanted to increase my exposure to emerging markets and materials (gold, coal and chemicals in particular) as I think the long range demand of China will be huge. SSL, a component of EZA, gives me that and other things, albeit they turn coal and NG into synfuel.
Sasol Olefins & Surfactants is a global supplier of surfactants,surfactant intermediates and feedstocks,related products and comonomers from plants in Germany, Italy, USA, South Africa, China, Slovakia and Dubai.
We also increased our stake in Wesco China Limited from 25% to 40% during the year. This growing associate distributor, with offices at Hong Kong and four other Chinese cities,blends, compounds and markets about 180 000 t of polymers a year. Sasol Polymers and Wesco China have formed another Chinese associate company,Wesco Polymers (Shanghai) Holdings Ltd. A new polymer distribution warehouse will be opened at Hangzhou,southwest of Shanghai,in 2005. The new venture will further facilitate the marketing and distribution of polymers in eastern and northern China.
SSI is about to commence a pre-feasibility study with a consortium of Chinese companies for the potential development of two 60 000 bbl/d to 80 000 bbl/d coal-to-liquid fuels (CTL) facilities in the People’s Republic of China.
Sasol today has exploration and production,manufacturing, and marketing and sales operations in more than 30 countries, including the USA,Qatar,China,Singapore,Malaysia and Japan in Asia,Germany,the UK,the Netherlands and Italy in Europe,and Equatorial Guinea,Gabon,Mozambique and Nigeria in Africa.
(from annual report)
- Dale lives in Maseru, Lesotho (Southern Africa) and owns EZA. I trust his picks and admit his performance has far surpassed mine the last two years <ggg>
- it does seem reasonably valued now (NAV), but that wasn't a factor in my decision. |
