Which stock would you select for long term portfolio, for growth and div, assuming R50k investment? For me, Exxaro is an interesting stock, personally questions remain in terms of the future capacity of the Richards Bay Coal terminal in relation to exports, but on the positive view, Eskom has indicated to wants to be higher grades of ore (at higher prices), and with Exxaro being a major supplier, the benefits would be reaped. Exx has climbed about 40% in the last 12 months, and with a forward PE of mid 10's, if earnings can be continued is good, but risks remain in my opinion (1 being its trading 3.5x NAV vs Anglo which is about 2x). On the other hand, and I would assume most would prefer Anglo at R340ish over Exx, as when buying Anglo, your getting 10% of Exx, 50% odd of Kumba, and the major stakes in Anglo Plat, this combined with the strong base metal operations coming online in South America in 2012, could prove strong. Also compare the percentage increase of Anglo in relation to BHP for the last 12 months, and you'll note Anglo lagging BHP quite significantly, Exx a good company, but buying cheap minimal exposure via Anglo may be a better option? We all know BIL..as quality.
