Share Investment, Discussion & Tips

[lukemg]

Been watching Glencore but not gone in because of the debt, it's huge and a big drag on the company. I still think you will do ok long term, especially after today !
Tentatively bought some more BP instead, they are in a good place financially, chuck out divis (Glencore just cancelled theirs and asked for more money) and any increase in oil (OPEC squeezing out other producers/turning taps down) and should be ok - 10 years out its a no-brainer.
Also using value cost averaging to guage regular investment levels every month, which assists in buying at lower levels but into global index ETF's.

[fullyautomatix]

No and I hope you have't sold, because Glencore is a f***great investment.

It is not going to go bankrupt, it is not Lehman Brothers who had worthless paper in their vaults, no Glencore has entire mountain ranges on it's balance sheet stuffed full of valuable ore. If Glencore did have to sell a mine or two is a mountain full of iron ore worthless ? I think not

Having said that....

It should be balanced by other stuff in your portfolio so even in the unlikely event it gets wiped out it's just a small dent in your profits, rather than a loss.

For example your portfolio is 100K, and Glencore is 10k

On current valuations 10% is a conservative estimate for capital growth right, lets say worst case Glencore goes bankrupt (and it won't, not next year) so 90 grand is now worth 99 grand from healthy stocks and you have 10 grand loss from Glencore, and you get 2-3 grand in divis. So even worst case you're still up.


There will be volatility on Glencore no doubt, but for those who dare, there are also siginificant profits to be made.

After I invested in Glencore, I put double the amount in the Pru and Dow chemical, any losses should be more than offset by the other two who stand to gain from low commodity prices.

Anything even big famous companies can and will be wiped out, but provided you're diversified this will not even dent your profits.

76 pence today

its basically bankrupt?

[BlasterBates]

76 pence today

its basically bankrupt?

http://http://www.bloomberg.com/news/articles/2015-09-23/glencore-s-stock-doesn-t-reflect-reality-as-bernstein-says-buy


Glencore will go bankrupt if commodities fall 33%

So no it isn't bankrupt, but there is a fear of bankruptcy.

I think commodities are bouncing around their lows and will for some time, I don't believe they'll drop another 33%, but you never know

[yasockie]

http://http://www.bloomberg.com/news/articles/2015-09-23/glencore-s-stock-doesn-t-reflect-reality-as-bernstein-says-buy


Glencore will go bankrupt if commodities fall 33%

So no it isn't bankrupt, but there is a fear of bankruptcy.

I think commodities are bouncing around their lows and will for some time, I don't believe they'll drop another 33%, but you never know

This is pretty generic - they are far more exposed to certain classes of commodities like copper than say oil, I think 33% drop is realistic for copper, given the drop in demand worldwide.

[MarillionFan]

76 pence today

its basically bankrupt?

Wow. Horrible.

I remember Barclays dropped to around 30p during the banking crisis on the same fears.

[jamesbrown]

Wow. Horrible.

I remember Barclays dropped to around 30p during the banking crisis on the same fears.

Yeah, and look how much money you would've made on that punt

I wouldn't necessarily be moving into Glencore now, as the commodities rout could become worse (although a lot is priced in), but I certainly wouldn't be selling either.

[MarillionFan]

Yeah, and look how much money you would've made on that punt

I wouldn't necessarily be moving into Glencore now, as the commodities rout could become worse (although a lot is priced in), but I certainly wouldn't be selling either.

Is that a sarcastic or a you're right

Barclays actually got bailed out by a rich Arab, and proceeded to rise to 4 quid within the next 18 months, so yes it was a good punt.

Bit wary in the case of Glencore, but I've added an extra 5k for now and will watch with interest.

[BlasterBates]

Is that a sarcastic or a you're right

Barclays actually got bailed out by a rich Arab, and proceeded to rise to 4 quid within the next 18 months, so yes it was a good punt.

Bit wary in the case of Glencore, but I've added an extra 5k for now and will watch with interest.

he who dares

[AtW]

Glencore will go bankrupt if commodities fall 33%

Err, and 33% fall in commodities is something that you rate as impossible? When tulip really hits the fan in China next year they can fall more than that.

[jamesbrown]

Is that a sarcastic or a you're right

Barclays actually got bailed out by a rich Arab, and proceeded to rise to 4 quid within the next 18 months, so yes it was a good punt.

Bit wary in the case of Glencore, but I've added an extra 5k for now and will watch with interest.

In the inimitable words of Lance-Corporal Jones, don't panic. In the broader scheme of things, it's an overreaction, but it probably isn't over yet. Things were a bit more serious with Barclays in early 2009 than they are with Glencore now.