Resources Sector Crisis

Marcus Padley

Marcus Today

All that has really happened this week (last week of September 2015) is that Glencore (listed in the UK) had a $2.5 billion capital raising two weeks ago at 125p and a few brokers have written research about it. You tend to get negative research when you issue $2.5 billion worth of equity at 125p only to find it trading at 68p two weeks later. This research included Investec’s note on Glencore which suggested that the company are not doing enough to cut their debt with Investec’s analyst extrapolating a scenario of lower commodity prices in which they made the supposition that under certain scenarios Glencore (and other companies) would be without value. - See more at: (VIEW LINK)


Marcus Padley
Director
Marcus Today

Marcus Padley founded Marcus Today in 1998 and leads the team of analysts and market commentators that publishes a daily stock market newsletter, presents four podcasts and runs an $80m Australian equity fund. He is passionate about educating and...

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