Commodity giant Glencore 'not a buy at any price'

LVAM's Graham Ashby and Cavendish's Paul Mumford have both ruled out buying into Glencore, although its share price has dived 13% since listing on the London market in May.

The commodity giant’s results for the first six months of the year surpassed analysts’ expectations last week, with its profit base increasing 57%, but Ashby and Mumford are subdued on the stock, pointing to ambiguity in how it operates. Ashby, head of UK equities, said the stock is difficult to value and the share price has a long way to fall before he will revisit the idea of owning it. “Glencore is an enormously complicated business – it is virtually impossible to work out what the trading revenues are and what returns the business is going to make,” he said. “We have spent a...