November has been a good month so far for investors in a number of stocks in both the US and UK markets, including commodities trading and mining giant Glencore (LON 🙂 (OTC :). Shares are up more than 20% so far in the month.
Therefore, we will take a closer look at whether GLEN stock deserves to be included in long-term portfolios and introduce several other names that may be of interest to investors.
Glencore
Glencore, headquartered in Switzerland, is considered a giant in the goods industry. Its history dates back to the 1970s and it employs approximately 160,000 people in more than 35 countries worldwide.
Glencore's 150 mining and metallurgical sites, as well as oil production assets, make up most of the operations.
Metals and mineral assets include ,, and ferro-alloys ,, and.
Thermal coal, oil products and are among the energy products.
Glencore & # 39; s marketing activities distinguish the group of producers. In other words, it physically sources raw materials from other suppliers and sells it to global customers.
Despite a strong month to date, year-to-date (YTD), GLEN stock has declined by about 21%. On November 12, the stock closed at 188.58p ($ 4.88 for US-resident stocks).
Despite the fall in 2020, it should be noted that stocks have made a strong comeback since the March lows.
The reason for this decline was mainly the pandemic, which marked a pause in some mining operations during several lockdowns. The company also incurred high storage costs for energy products.
The group released the half year in early August. CEO Ivan Glasenberg said:
"We are pleased to announce the overall strong financial performance of our various businesses, reflecting the countercyclical profitability of our large-scale marketing activities, combined with a cash-generating industrial asset base that has rapidly adapted to the changed environment."
Despite his optimism, the net loss was $ 2.6 billion. A year ago, it reported a profit of $ 226 million. Management has also canceled the interim dividend as it wants to reduce its debt.
We believe that GLEN shares provide an acceptable margin of safety for long-term investors. In other words, most of the bad news has already been included in the price.
Forward P / E, P / S and P / B ratios are 11.68, 0.19 and 0.92, respectively. Therefore, we would try to buy the dips.
Bottom Line
Those investors who are not ready to put capital into the commodity giant may also consider trading on the stock exchange. funds (ETFs) that also have Glencore as a holding company. Since most of these funds offer juicy dividend payments, they can also appeal to passive income seekers.
Examples of such funds are:
FlexShares Morningstar Global Upstream Natural Resources Index Fund (NYSE 🙂 – down 11.6. % YTD; dividend yield 4.1%;
Global X Copper Miners ETF (NYSE 🙂 – Up 16.8% YTD; dividend yield 0.5%;
iShares Global Materials ETF (NYSE 🙂 – Up 9.67% YTD; dividend yield 3.8%;
iShares MSCI Global Metals & Mining Producers ETF (NYSE 🙂 – down 0.5% year-on-year; dividend yield 5.5%;
SPDR S&P Global (NYSE 🙂 Natural Resources ETF (NYSE 🙂 – Down 12.3% YTD; dividend yield 3.6%;
These funds provide access to a range of both US and international companies, such as:
British miner Anglo American (LON :), (OTC 🙂 – down 5.2% YTD; dividend yield 2.7%;
Global Resources Group Headquartered in Australia BHP Billiton (ASX :), (NYSE 🙂 – down 3.9% YTD; dividend yield 7.5%;
Canada-based First Quantum Minerals (OTC 🙂 – up 19.8% year over year; dividend yield 0.06%;
Freeport-McMoRan, Headquartered in Phoenix, Arizona (NYSE 🙂 – Up 52.3% YTD;
Canada-based Ivanhoe Mines (OTC 🙂 – Up 33.9% YTD;
Linde (NYSE :), UK based industrial gases and engineering, up 20.4% year-over-year; dividend yield 1.5%;
Newmont (NYSE 🙂 Miner in Greenwood Village, Colorado, Up 50.3% YTD; dividend yield 2.4%;
British-Australian mining and metals company Rio Tinto (NYSE 🙂 – up 5.3% year-on-year; dividend yield 8.6%;
India-based natural resources group Vedanta (NYSE 🙂 – down 34.7% year-over-year; dividend yield 12.9%.
