Glencore Share Discussion Threads

[waldron] 16/1/2019 09:04

Glencore "far too cheap": analyst

MAJOR miner and trader Glencore is trading well under its historical average valuation, and its share price could climb 70%, despite the prospect of massive US fine, according to Bernstein.
Glencore "far too cheap": analyst

Glencore's coal and copper businesses don't get the valuation as its competitors, Gait says

Finance > Capital-markets

16 January 2019


Glencore has been hit by corruption investigations and the "high discounting of the coal and African copper business units", Bernstein analyst Paul Gait said.

[twixy] 15/1/2019 22:36

It has been mentioned by a few commentators in the financial press and Ivan did say buy backs are one of two ways GLEN will return funds to shareholders, dividends being the other. No doubt we will hear if there is a buy back extension with the results on Feb 20th. It would take a while with buy backs but eventually Ivan would get control.

[dremel] 15/1/2019 22:03

This buyback and its extensions makes me wonder if Ivan is not secretly intending to take this private ?, just wondering, be nice if it was .

[waldron] 15/1/2019 17:27

Rio Tinto
3,902 +1.06%


Anglo American
1,795 +0.71%


Glencore
291.75 +0.15%


Gold COMEX 1,288.40 -0.09%
Silver COMEX 15.61 -0.33%
Copper COMEX 2.64 -0.79%
Brent Crude Oil NYMEX 60.19 +2.03%
Gasoline NYMEX 1.40 +2.90%
Natural Gas NYMEX 3.54 -1.50%

[ariane] 15/1/2019 12:34

4 resources stocks with investing appeal? BP plc, Glencore PLC, Tullow Oil plc and Royal Dutch Shell Plc
Do these resources shares have bright futures? BP plc (LON:BP) (BP.L), Glencore PLC (LON:GLEN) (GLEN.L), Tullow Oil plc (LON:TLW) (TLW.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L)
January 15, 2019 Robert Stephens FTSE 100




Royal Dutch Shell Plc
Royal Dutch Shell Plc

The prospects for resources shares BP plc (LON:BP) (BP.L), Glencore PLC (LON:GLEN) (GLEN.L), Tullow Oil plc (LON:TLW) (TLW.L) and Royal Dutch Shell Plc (LON:RDSB) (RDSB.L) is the focus of this article. Could they deliver improving share price growth?

With the oil price having been volatile of late, BP has experienced a difficult period. This situation could continue in the near term in my opinion, with demand growth for oil potentially being weaker than expected due to fears surrounding the prospects for the world economy.

Since BP has invested heavily in its asset base and in acquiring the petroleum assets of BHP Group, I think that it could offer long-term growth. A dividend yield of around 6% suggests to me that the stock could offer good value for money.

Glencore’s shares have been volatile in recent months, with the prospect of a stronger dollar potentially weighing on investor sentiment. This trend could continue in 2019 in my view, since a couple of interest rate rises are expected.

However, with Glencore having a single-digit P/E ratio and an improved business model in my eyes after reducing costs and debt levels, I’m optimistic about its recovery prospects in future years.

Tullow Oil’s strategy of increasing production and reducing debt could pay off in the medium term. it may create a more profitable and less risky business that is able to deliver improved share price performance.

In the near term, its shares could be volatile and risky due in part to the uncertainty surrounding the oil price. But for a long-term investor like me, I believe that Tullow Oil could offer recovery potential given favourable operating conditions.

Shell’s strategy of reducing debt and disposing of non-core assets could create a stronger business in the long term in my view. It may allow the company to focus on areas where it feels it has the greatest competitive advantage and most favourable risk to reward ratio.

Since Shell has a dividend yield of around 6%, I believe that its shares could offer a margin of safety. Although its financial performance is highly dependent upon the price of oil, I think that it could outperform the FTSE 100 over the long term.




About Robert Stephens 5344 Articles
Robert Stephens is a CFA Charterholder and an Equity Analyst by trade. He is a passionate private investor who has been buying and selling shares for many years, owning a wide range of UK shares in the process. He has written for Citywire and The Motley Fool US and now runs his own business. To contact Robert, please email [e-mail] or use one of the other contact methods available on the 'Contact Us' page

[leoneobull] 15/1/2019 12:28

Https://newsthump.com/2019/01/15/opinion-this-is-the-fault-of-absolutely-everyone-except-the-people-who-actually-voted-for-it/

[waldron] 14/1/2019 20:28

PRESS: Glencore Made USD1 Billion Of Loans To Dan Gertler - WSJ
LONDON (Alliance News) - Switzerland-based Glencore PLC gave almost USD1 billion to companies ...
Alliance News
14 January, 2019 | 2:48PM
Email Form

LONDON (Alliance News) - Switzerland-based Glencore PLC gave almost USD1 billion to companies associated with US-sanctioned businessman Dan Gertler, the Wall Street Journal said Monday.

The loans were made over a 10-year period beginning in 2007, the WSJ said, to help finance some of Gertler's investments in the Democratic Republic of the Congo, where Gertler is accused of having corrupt ties to the government.

Gertler filed royalty claims against Glencore in April last year worth over USD3.7 billion against Glencore, with Glencore eventually agreeing to the payments.



By George Collard; [e-mail]

[waldron] 14/1/2019 20:23

Rio Tinto
3,861 -0.17%


Anglo American
1,782.4 -1.77%


Glencore
291.3 -1.47%


Gold COMEX 1,288.00 -0.12%
Silver COMEX 15.64 -0.10%
Copper COMEX 2.65 -0.32%
Brent Crude Oil NYMEX 59.13 -2.23%
Gasoline NYMEX 1.37 -2.24%
Natural Gas NYMEX 3.58 +15.62%

[maywillow] 14/1/2019 20:17

PRESS: Glencore Made USD1 Billion Of Loans To Dan Gertler - WSJ
LONDON (Alliance News) - Switzerland-based Glencore PLC gave almost USD1 billion to companies ...
Alliance News
14 January, 2019 | 2:48PM
Email Form

LONDON (Alliance News) - Switzerland-based Glencore PLC gave almost USD1 billion to companies associated with US-sanctioned businessman Dan Gertler, the Wall Street Journal said Monday.

The loans were made over a 10-year period beginning in 2007, the WSJ said, to help finance some of Gertler's investments in the Democratic Republic of the Congo, where Gertler is accused of having corrupt ties to the government.

Gertler filed royalty claims against Glencore in April last year worth over USD3.7 billion against Glencore, with Glencore eventually agreeing to the payments.



By George Collard; [e-mail]

[ken tennis] 14/1/2019 17:16

By the way that is before tax so don't get too excited

[ken tennis] 14/1/2019 17:15

Yes easy with the amount of profit theyre making on coal which amounts to over 30% of their profit and estimated to be in excess of 5 billion ye 2018

Come on GLENDA we want your money and the lovely Divis along the way

[waldron] 14/1/2019 17:12

Rio Tinto
3,861 -0.17%


Anglo American
1,782.4 -1.77%


Glencore
291.3 -1.47%


Gold COMEX 1,288.00 -0.12%
Silver COMEX 15.64 -0.10%
Copper COMEX 2.65 -0.32%
Brent Crude Oil NYMEX 59.92 -0.93%
Gasoline NYMEX 1.39 -0.66%
Natural Gas NYMEX 3.52 +13.55%

[losses] 14/1/2019 16:58

Well let's see... £4+ in 2019

[montyhedge] 14/1/2019 15:59

Doubt it. 255p looks to me.

[losses] 14/1/2019 15:02

Monty comeback in 6 months and these will be 400+

[montyhedge] 14/1/2019 13:42

News just out Wall St Journal, about Glencore loans. Not good, I'm sure.

[the grumpy old men] 14/1/2019 13:35

Glencore Gave Loans to Businesses Linked to Suspect Congo Dealings
Documents show mining giant provided nearly $1 billion in loans and advances to aid investments by accused businessman Dan Gertler
By Scott Patterson and
Rob Barry
Jan. 14, 2019 8:00 a.m. ET

Swiss mining giant Glencore PLC provided nearly $1 billion in loans and advances to companies associated with an Israeli businessman accused of having corrupt ties to government officials in the Democratic Republic of Congo,

[linton5] 14/1/2019 13:35

Some bad news just out I see

[the grumpy old men] 14/1/2019 11:20

Gold COMEX 1,288.00 -0.12%
Silver COMEX 15.64 -0.10%
Copper COMEX 2.65 -0.32%
Brent Crude Oil NYMEX 59.61 -1.44%
Gasoline NYMEX 1.38 -1.48%
Natural Gas NYMEX 3.32 +7.26%

[montyhedge] 14/1/2019 10:59

Share volume seems low, so buybacks helping shareprice to hold quite well.

[florenceorbis] 12/1/2019 13:12

Glencore Is Said in Talks for London Mayfair Headquarters
[Bloomberg]
Jack Sidders and Thomas Biesheuvel
BloombergJanuary 11, 2019

(Bloomberg) -- Glencore Plc is in talks to lease a new London office for its oil-trading operations in the city’s Mayfair district, people with knowledge of the matter said.

The Swiss commodities trader is negotiating taking space at the Hanover Square Estate, an office complex being built by Great Portland Estates Plc that’s due to be completed in 2020, the people said, asking not to be identified because the talks are private. Glencore, which listed in London in 2011, is seeking to rent about 50,000 square feet (4,645 square meters) in the development, the people said. The deal has yet to be finalized and there’s no guarantee that it will be completed, they said.

Spokesmen for Glencore and Great Portland Estates declined to comment.

Glencore, headed by billionaire Ivan Glasenberg, is the world’s biggest commodities trader, shipping everything from copper to coal and grain to zinc. London is its oil-trading base.

Alex Beard, the head of oil at Glencore, is based in London. The company has oil assets in Cameroon, Chad and Equatorial Guinea and is one of the world’s leading traders of crude and oil products, saying it markets about 6 million barrels a day. Its current London office is half a mile away at 50 Berkeley Street, which has been the company’s U.K. headquarters since 2000.

Hanover Square Estate is being built above the entrance to the Bond Street station for the upcoming Crossrail project. Private-equity group KKR & Co. has already signed up for space in the development, which will occupy a prime location in one of the most expensive neighborhoods for office space in the U.K. capital.

--With assistance from Javier Blas.

To contact the reporters on this story: Jack Sidders in London at [e-mail];Thomas Biesheuvel in London at [e-mail]

To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at [e-mail], Paul Armstrong, Patrick Henry

For more articles like this, please visit us at bloomberg.com

[sarkasm] 11/1/2019 19:25

Glencore Should Spin Off Its New Tech Assets
Jan. 11, 2019 2:14 PM ET |
About: Glencore Plc (GLCNF), GLNCY, Includes: BHP, FSUGY, FSUMF, LGORF, RIO, VALE
Joshua Hall
Joshua Hall
Growth at reasonable price, natural resources, base metals, investment advisor
Marketplace
Industrial Minefinder
(1,968 followers)
Summary

Glencore is one of the world's largest natural resources companies. It's fully integrated across extraction, processing, logistics, and marketing.

Glencore's poor returns on invested capital explain why its valuation trails its closest peers.

Unlike its peers, Glencore is not a major iron ore producer. This has been a comparative weakness.

Glencore's unique advantage is its world-class assets of key metals needed for electric vehicles and energy storage.

I propose a hypothetical spin-off, called GlenTech that I think could unlock $10 billion of value for Glencore shareholders.

Looking for a community to discuss ideas with? Industrial Minefinder features a chat room of like-minded investors sharing investing ideas and strategies. Get started today »
Glencore's Peer Comparison

Glencore (OTCPK:GLNCY, OTCPK:GLCNF) is one of the world's largest natural resource companies. It essentially has three core businesses: (1) mining and refining of metals, (2) coal (coking and thermal), and (3) agricultural products that are all integrated with its marketing division which handles logistics and trading of the commodities.

The following tables show how Glencore stacks up against its two closest peers — BHP (BHP) and Rio Tinto (RIO):
as of June 30, 2018

Total Assets (billion) Book Value (billion) Market Cap (billion) Invested Capital (billion)
BHP $112 $55 $125 $100.4
Glencore $134.5 $45.5 $52 $97.4
Rio Tinto $86.7 $39.3 $84 $78.9



as of June 30, 2018

Price to Book 10-Year Average Return On Invested Capital (ROIC)* Price to Earnings Price to Cash Flow
BHP 2.27 11.9% 19.8 7.1
Glencore 1.14 3.73% 8.7 10.5
Rio Tinto 2.14 8.2% 8.0 5.2

*source: Morningstar

Despite having a similarly sized capital base to BHP, Glencore's market cap is less than half that of BHP's. The reason becomes clear when we compare returns on invested capital. According to Morningstar, the average annual return on invested capital over the last 10 years for BHP has been three times higher than that of Glencore. More recently, based on my calculations for the July 2017 to June 2018 period, the ROIC for these three miners were BHP 7.5%, Glencore 5.3%, and Rio Tinto 17.5%.