Wow $300-400 range to $70, not too bad though they still look like they have a way to go. Especially with China's big announcement.
Down 29.5% for the day. That's gotta hurt. It pretty much closed on its low and below a psychological round number. Good chance it will continue to slide tomorrow
It's debt has been downgraded to junk, they're talking about it being a contagion risk on CNBC (whatever that's worth).
Already heard a sound byte: Glencore the lehman moment in commodities. I wonder if their traders were shorting copper while they were digging it out of the ground :lol:
Sorry that should have read threatening to downgrade to junk, they've been re-rated BBB, 2 above junk. http://www.businessinsider.com.au/glencore-stock-after-goldman-sachs-note-on-credit-rating-2015-9
So I guess now they are "junk" they have a big problem with Credit Default Swaps? I saw somewhere the cost of their CDS (insurance against a default) has increased 40% last week. 40% that shareholders have had to fork out for!! No wonder they are tanking. And they are linked to Trillions in Derivatives which will drag a bunch of other people down. Glencoe appears to owe $30B but is worth $16B and if commodities drop much more they are in the POO.
Opinion seems to be divided on what the real value of the company is at current commodities prices, some people say it's worth more than the current price even after the 17% rebound overnight, others that it's value is 0 or less. Apparently they have some primo agriculture assets here in South Australia though. things that would be snapped up in a heart beat if they did have to part out the company.
Lot of hype around this one too... Could Glencore trigger the next GFC? http://www.news.com.au/finance/busi...ger-the-next-gfc/story-fnkgdg1h-1227550915667