Tuesday newspaper share tips: What to do with Glencore; Time to capitalise on Vodafone's drop
Updated : 11:16
On Monday, Glencore shares tumbled after Investec warned the stock holds little value for shareholders. On Tuesday, we saw shares rise in the morning after Citigroup and Bernstein came out in defence of the mining company.
So what to do with it? The Telegraphs’s Questor is posing the same question.
Between the company needing to cut debts to prevent a credit downgrade that would hurt its trading operations, and reducing borrowings which would restrict trading operations and see its profits fall further, Questor said the company is between a rock and a hard place. It is sticking with its advice which has been the same since January when it was at 244p - sell up.
Tempus at The Times is looking at another of Monday’s big fallers, with Vodafone dropping on the back of news that it was no longer in discussions with Liberty Global regarding a possible exchange of selected assets. The deal would’ve combined the two companies’ mobile and cable networks in European markets to better compete with rivals.
While the deal may be off, Tempus thinks Vodafone will bounce back and has a clear growth strategy (albeit a slower process now). While it doesn’t think Liberty will resume discussions any time soon, the fall in price makes the yield look attractive and advises traders to buy.