AAL shares below £4

EdGasket

Anglo-American share prices not seen since pre year 2000. Surely all the big mining companies can't keep going down?

george4064

My take on mining stocks is that the outlook for commodities isn't good, so I'd rather not be in it.

Thanks.


P.S. the stock has recovered to 405p a share, if you buy now, long road ahead.

nb73

george4064 wrote: »

My take on mining stocks is that the outlook for commodities isn't good, so I'd rather not be in it.

One less buyer... and so the share price drops and that's what makes a market

jimjames

EdGasket wrote: »

Anglo-American share prices not seen since pre year 2000. Surely all the big mining companies can't keep going down?

Based on your previous post about portfolio performance this might not be the best criteria for buying shares, if buying individual shares is even something worth doing. How would it fit into your portfolio allocations?

EdGasket

I wasn't really looking at it from a personal portfolio viewpoint; rather from the view that surely all the biggest mining companies can't be becoming so worthless? Either economies are recovering like the politicians keep telling us or they aren't like the price of mining companies is telling us and something dire is going on.

george4064

EdGasket wrote: »

I wasn't really looking at it from a personal portfolio viewpoint; rather from the view that surely all the biggest mining companies can't be becoming so worthless? Either economies are recovering like the politicians keep telling us or they aren't like the price of mining companies is telling us and something dire is going on.

The thing is that mining companies' earnings and profits have been declining, so naturally their share prices have fallen with them.. So for example their p/e ratios haven't dropped at all, actually they have gone up and up meaning that the companies are increasingly overvalued...


Anyone buying now is taking a long term punt that they will recover, but as I said it will be a long road ahead. For me to invest, I'd have to be able to see some optimism in the commodities sector before investing.

ChesterDog

Even from a contrarian point of view, it's not worth investing in something if you think it's still going down.

I think it's still going down. :-)

ChesterDog

Beware, also, of following generalities.

No politicians are saying China's economic growth isn't slowing down (but you seem you seem to have formed the view they are all saying 'economies are recovering') and that is a big driver of commodity prices, and therfore share prices of companies in those fields.

Politicians, anyway, tell you whatever they want to. The market tells it like it is.

Thrugelmir

EdGasket wrote: »

Anglo-American share prices not seen since pre year 2000. Surely all the big mining companies can't keep going down?

Why not. People are obviously having good reason to derate these companies prospects.

EdGasket

Thrugelmir wrote: »

Why not. People are obviously having good reason to derate these companies prospects.

Because its saying there is something seriously wrong if the world no longer needs resources; maybe that economic crash to be remembered for 100s of years is about to happen?

Thrugelmir

EdGasket wrote: »

Because its saying there is something seriously wrong if the world no longer needs resources; maybe that economic crash to be remembered for 100s of years is about to happen?

That's a very simplistic view. Needing resources and Company finances\profitability are totally different factors. Anglo announced the closure of a coal mine in Oz today. 3 million metric tonnes of output won't be easy nor quick to replace.