Published On:
Wed, Sep 23rd, 2015
Glencore’s Stock Doesn’t Reflect Reality as Bernstein Says Buy
Bernstein says stock plunge this year has been overdone ; Commodities have to fall 34% for stock to be worthless: Gait
Glencore Plc shares have fallen so low that valuations are divorced from underlying commodity markets, according to Sanford C. Bernstein & Co.
Paul Gait, an analyst for Bernstein in London, recommended buying the stock, saying Glencore’s 79 percent plunge this year has been excessive relative to the decline in commodity prices. The valuation is now reflecting the risk of bankruptcy, he said. The shares rose for the first time in five days, gaining as much as 5.1 percent in London.
Read the full story at Bloomberg, by Agnieszka De Sousa Kevin Crowley
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