Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineAnglo American shares show resilience during troubled times
Anglo American (AAL) £15.62
Loss to date: 5.4%
Original entry point: Buy at £16.52, 12 July 2018
The FTSE 100 miner has held up well considering the negative backdrop for commodity stocks – a brewing trade war, falling oil prices, fears about China’s appetite for raw materials and general concerns about a slowdown in global economic growth.
This backdrop might explain why Anglo appears in the list of most shorted stocks, plus the fact that platinum prices have been weak this year, so too rough diamond prices. It is a major producer of both commodities.
We take comfort in the stock’s resilience during troubled times. We’re only down 5.4% since initiating the Great Idea trade in July which is an outperformance versus the FTSE 100, down 7.3% over the same period.
The business is prioritising debt reduction to further strengthen its balance sheet. Jefferies analyst Christopher LaFemina says Anglo has high-quality copper production growth and lots of cost cutting opportunities.
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
