Stocks to watch on the JSE and why? (In brief)
1. Glencore and BHP Billiton:
Global demand for coal is expected to slow down slightly however many institutional investors think that the coal prices are currently at an all time low and is expected to increase due to increases in supply. This coupled with the weakening of the Rand against the Dollar favours companies like Glencore and BHP that are global multi-nationals. Both companies also have a very attractive P/E ratio.
2. Anglo American:
Anglo is planning to dispose off it's interest in LaFarge (50%) for a juicy price which will buff up their cash covers and help them to possibly improve their gearing and pay off some debt.
3. African Bank Investments Limited (ABIL)
ABIL plans to dispose off the troubled Ellerines unit which will provide them with much needed cash. The company is also priced at a major discount to its fair value/net asset value.
Global demand for coal is expected to slow down slightly however many institutional investors think that the coal prices are currently at an all time low and is expected to increase due to increases in supply. This coupled with the weakening of the Rand against the Dollar favours companies like Glencore and BHP that are global multi-nationals. Both companies also have a very attractive P/E ratio.
2. Anglo American:
Anglo is planning to dispose off it's interest in LaFarge (50%) for a juicy price which will buff up their cash covers and help them to possibly improve their gearing and pay off some debt.
3. African Bank Investments Limited (ABIL)
ABIL plans to dispose off the troubled Ellerines unit which will provide them with much needed cash. The company is also priced at a major discount to its fair value/net asset value.
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