Community

Share knowledge. Find answers. Ask questions.

Online Share Trading

Engage and learn about markets and trading online

KUMBA OR ANGLO AMERICAN

Reply
BLOCKOUT
New Contributor
As a fairly new investor I would like advice on the following. Kumba and Anglo have good Div and earning yields, but Anglo seems expensive at this stage. For long term what would do. Thanks
0 Kudos
6 REPLIES 6
Not applicable
Anglo expensive? thats a first.
0 Kudos
Super Contributor
Since Anglo owns about 65% of Kumba, you can get some Kumba through Anglo. A play on Iron as opposed to a more diversified resources maybe. Both look fairly cheap at the moment IMHO. But I think given the choice I would go with KIO.
0 Kudos
Not applicable
I guess it all hinges on your views regarding the platinum industry, which is weighing Anglo down. If you believe that platinum is going to turn, then the investment case for AGL is really strong, because you get the best of both worlds - exposure to iron ore profits - and the bottom of the plat cycle. If, like me, however, you believe that platinum is still in the doldrums, then I would stick with KIO. Personally, long term, I wouldn't take either of these right now. Resource stocks are always volatile and tricky to invest in, so my preference with them is to bottom pick - i.e. wait for the real selloff. I also have a personal preference for Exxaro over KIO. Exxaro is a shareholder in KIO - so you get the iron ore exposure, and it gives you coal exposure as well - which is still a hot commodity
0 Kudos
Super Contributor
Anglo very cheap, a PEG of 0.63, with four projects to come online in 2013, also diversified as oppose to Kumba. I say Anglo. If demand drops in China it could hurt Kumba.
0 Kudos
Not applicable
if demand drops in China, it will hurt AGL too. iron ore is the biggest revenue contributor to AGL. Platinum second. Copper will also take a hit.
0 Kudos
Valued Contributor
angloe lsoign copper and picking up diamonds .. hmm ..
0 Kudos