Glencore: The Big Questions

27th May 2011

Should you invest?

Here Thisismoney mulls whether investors should be buying Glencore. Its verdict is that there is no compelling reason to buy now. The Telegraph's investment column Questor argues that there are better mining stocks.

Are you invested already?

On trade website FTAdviser, columnist John Lappin asks if Glencore's inclusion in the FTSE 100 and therefore the automatic inclusion of a complex and controversial firm in tracker and pension funds is the best for investors.

Is it ethical?

Just before the listing, investment research firm Morningstar considered Glencore's poor reputation, noting that many non-governmental organisations say the firm falls well short of the standards of its peers on ethics and the environment.

Are the criticisms from the chattering classes unfair?

The Financial Times Lombard column (paywall) argues that many of the gut reactions to Glencore have proved to be unfair. Among other things, it asks how a company can be secretive when it has issued a 1,500 page prospectus for a float. (behind paywall)

What might happen next?

Glencore might buy mining firm Xstrata, which it already part owns. An industry expert says this would make sense on the Washington Post.

After a stuttering start, will the shares go up in price?

The shares are trading below the 530p offer price but Citywire quotes one analyst saying they could reach 600p.

 

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