Author Topic: D. Shapiro is selling clients out of AGL  (Read 8958 times)


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D. Shapiro is selling clients out of AGL
« on: April 30, 2013, 03:32:56 pm »
Dour JSE outlook forces a break with tradition

But in the world of money management there is little room for emotion, or sentimentality. During the past week, I made a decision that, a generation ago, would have been unimaginable: I began selling my clients out of Anglo American.

Anglo American has been, and possibly still is, the bedrock of most local portfolios since the company listed back in 1917. The group's extensive interests, which covered a wide range of industries - from mining to steel - made it synonymous with the South African economy and a "must-have" for any investor wanting to prosper from the country's attractive growth prospects. But since shifting its home base to London in 1999, to tap international finance markets for its global ambitions, the once dominant diversified miner has fallen badly behind the performances of peers such as BHP Billiton and Rio Tinto.

At present levels, the share is trading at a deep discount to its fair value - roughly the present value of future earnings - and the market is holding on to hopes that newly appointed CEO Mark Cutifani will unlock this value. But the company's fundamentals are deteriorating and future earnings are likely to continue downwards.

There are other exciting prospects around the world to choose from, and I haven't the patience to hang on any longer. I have decided to abandon my holdings. Now that I've plucked up the courage, Pick n Pay could be next.


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Re: D. Shapiro is selling clients out of AGL
« Reply #1 on: April 30, 2013, 04:19:58 pm »
I have to agree. Mostly due to labour issues. I won't buy any AGL right now, and if I owned some I'd sell it too.