Glencore Share Discussion Threads

[kenmitch] 26/8/2016 12:31

Surely the main reason for the lower post results share price (in addition to sector weakness) was the $400 million loss on hedging the coal price. The rise in the coal price clearly caught Glencore out. A surprise that as likely price should be a GLEN strength.

Other than that the results were well received especially the so successful debt reduction. To think this time last year one broker thought they were going bust!

Share could well go a lot higher in time, but the sector has had a great year so best to see GLEN as an excellent longer term lockaway AND with a return to dividends promised too.

[sr2day] 26/8/2016 10:20

not the moment to buy imo.miners will take another battering especially Glen.overvalued by a long chalk.

[bigbigdave] 26/8/2016 10:05

Seems the rule with GLEN is to sell out on the evening before results and buy back 48 hours later!

[dremel] 26/8/2016 00:16

Not sure Glencore is down because of its prod report. If you look All the Miners are down about the same percentage.
Always wondered what was causing the ftse to keep climbing ?, post brexit two fingers ?, now realism is kicking back in, so expect to see the Ftse drop back thus taking the miners down with it.
Looks like a lot of us will be pushing up the diasy,s before this company ever goes anywhere ?.
Night Night all.

[losses] 25/8/2016 15:21

Yes but I'm hoping 160-170 will hold

[sr2day] 25/8/2016 14:20

any negative news from china will accelerate the downside.this could easily fall back to 140p in the next few weeks.

[losses] 25/8/2016 12:18

I think there will be a bit downside to come... Will add more in the 160s

[russell250] 25/8/2016 11:18

I did reduce my long position when glen was at 198 - after hero reduced just before results also a bit disappointed
on yesterdays results which I thought very positive for next 12 months - I added yesterday -
I also thought webcast was very strong yesterday - available as recoreded on glencore website
good articles in todays ft - hero again on cnbc being positive still has 6.5%
blackrock bought over 5% recently

I added heavily today at 176/177
have another buy order at 175 - but after fed Friday think dollar related whole sector will rise again - no rate rise before December and if Trump gets in not this year

[kdr246] 25/8/2016 10:37

tsmith2 cont...There are also some charts with the article.

[kdr246] 25/8/2016 10:36

tsmith2 apologies for the delay...For a chief executive once renowned as buccaneering, Glencore's Ivan Glasenberg has pledged less swash and more buckling down.On Wednesday, the miner-cum-commodity trader confirmed that it would revise down its debt targets. The ratio of net debt to earnings before interest, tax, depreciation and amortisation should fall to two, from three, in an attempt to make Glencore more boring. In the new normal of lower commodity prices, shareholders should welcome a duller look.Glencore's equity value depends on its debt, even if questions about the company's survival have been quashed. Prices for its credit default swaps, a proxy for debt riskiness, have fallen by three-quarters since January.The share price has duly doubled. The more Glencore preserves free cash flow from existing operations, and uses asset sales to de-lever, the more its market value should benefit.There are good reasons to believe it will. Net debt, which includes inventories of commodities Glencore describes as "readily" sellable, has fallen from $36bn in 2013 to $23.5bn.Asset sales this year have reached $4bn and UBS estimates there could be another $2bn-$2.5bn to come, including an Australian railway and a gold mine in Kazakhstan, which would put the net debt target, assuming projected ebitda of $10.5bn, comfortably within sight.Meanwhile, copper and coal prices, nearly half of group ebitda, have increased recently, boosting the share price. Spot prices imply free cash flow of $4.5bn by the end of the year.There is even a prospect of recommencing the dividend. But the rally has in large part been driven by Chinese stimulus spending and cuts in its local coal production, boons which are unlikely to be renewed in the near future. Thus downward pressure on Glencore's selling prices could resume.In contrast to Rio Tinto, whose shares trade at 10 times enterprise value to ebitda, Glencore's preference for safety may have held its value back to about seven times. Mr Glasenberg deserves more credit for steadying the ship. Meeting his targets should boost its rating.Cont....

[tsmith2] 25/8/2016 10:22

Happy to be patient then greedy..Froth coming off

[wookie77] 25/8/2016 09:11

50MA providing support at 176.1 for now....will it hold?

[rackers1] 25/8/2016 08:38

link please for the FT Lex Asia.

[sr2day] 25/8/2016 08:21

if you are patient enough it will get there either today or tomorrow imo.

[tsmith2] 25/8/2016 08:12

Full article anyone?If these get £1.7 top up time

[nortic 007] 25/8/2016 07:41

I must say that article in Lex reads very well indeed .

[kdr246] 25/8/2016 00:06

"Feather in his cap" A good read and opinion in FT Lex Asia. The outlook is a positive one assuming the underlying commodity prices behave with targets achievable, future dividend and share price uplift. Thoughts?

[hem007] 24/8/2016 22:58

Please check these two stocks. One is up and coming BIG and the other really doesn't need much nursing EGO. The two together would be something that you don't want. To miss out on. Play nice all.

[sr2day] 24/8/2016 22:35

ignore at your peril.

[bigbigdave] 24/8/2016 14:47

Ignore, been on my filter list for some time.

[tsmith2] 24/8/2016 14:40

of course - divi being reinstated FY = compelling short

[scemer] 24/8/2016 14:20

Whats compelling sr2 could you expand

[sr2day] 24/8/2016 13:56

yes compelling short, first target of 179 breached today,next target 160p.

[tsmith2] 24/8/2016 11:04

Compelling short - lol