If one thinks a company is going bankrupt, then it's almost never too late to short it.
Stocks that have already fallen by 67% (or even 99%) can still fall by another 99%.
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Glencore and Noble
- Thread starter m22au
- Start date
If one thinks a company is going bankrupt, then it's almost never too late to short it.
Stocks that have already fallen by 67% (or even 99%) can still fall by another 99%.
.
no way they take it private...debt is toxic and they would never get the financing
Sure. But there is also such a thing as being "late for the party". And boy can a short cover rally be a bitch if that happens.If one thinks a company is going bankrupt, then it's almost never too late to short it.
Stocks that have already fallen by 67% (or even 99%) can still fall by another 99%.
.
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Glencore Surges 72 Percent in Hong Kong Amid Unit Sale Talksno way they take it private...debt is toxic and they would never get the financing
Bloomberg - Oct 5th, 2015
.........
“Ivan Glasenberg has until May 2017 to restructure the business,” Sanford C. Bernstein Ltd. analysts including Paul Gait wrote in a report on Monday, referring to Glencore’s chief executive officer. Debt is not an existential issue for Glencore, the analysts wrote.
+ + +
Do I have a clue what is happening. No. Speculating like all the rest of us.
https://www.bloomberg.com/news/arti...e-exposure-is-a-100-billion-gorilla-bofa-says
Banks' Glencore Exposure Is a $100 Billion `Gorilla,' BofA Says
Global financial firms’ estimated $100 billion or more exposure to Glencore Plc may draw more scrutiny as regulatory stress tests approach after the commodity giant’s stock plunge this year, according to Bank of America Corp.
Bank shareholders and regulators may be concerned that Glencore’s debt and trade finance deals, of which a “significant majority” are unsecured, will reveal higher-than-expected risk and require more capital once the lenders are put through U.S. and U.K. stress tests, BofA analysts said Wednesday. Adding an estimated $50 billion of committed lines to the company’s own reported gross debt, the analysts say financial firms’ exposure may be three times larger than Glencore’s reported adjusted net debt of less than $30 billion.
“The banking industry may have significantly more exposure to Glencore than is generally appreciated in the market,” analysts including Alastair Ryan and Michael Helsby said in a note titled “The $100 Billion Gorilla In the Room.” The commodity-price bust and “stress in Glencore’s share price and debt spreads may spur a review by investors, supervisors and bank management,” while “bank shareholders may pressure managements to reduce exposures,” they said.
Standard Chartered Plc, which has also been battered by the commodity rout, has the greatest exposure to commodity traders among European banks with $1.9 billion of syndicated loans, including more than $1 billion of loans and credit lines to Trafigura Pte Ltd., Sanford C. Bernstein said Oct. 5. Credit Agricole AG has the largest exposure of any bank to Glencore at $841 million, followed by HSBC Holdings Plc with $658 million, analyst Chirantan Barua said.
Banks' Glencore Exposure Is a $100 Billion `Gorilla,' BofA Says
Global financial firms’ estimated $100 billion or more exposure to Glencore Plc may draw more scrutiny as regulatory stress tests approach after the commodity giant’s stock plunge this year, according to Bank of America Corp.
Bank shareholders and regulators may be concerned that Glencore’s debt and trade finance deals, of which a “significant majority” are unsecured, will reveal higher-than-expected risk and require more capital once the lenders are put through U.S. and U.K. stress tests, BofA analysts said Wednesday. Adding an estimated $50 billion of committed lines to the company’s own reported gross debt, the analysts say financial firms’ exposure may be three times larger than Glencore’s reported adjusted net debt of less than $30 billion.
“The banking industry may have significantly more exposure to Glencore than is generally appreciated in the market,” analysts including Alastair Ryan and Michael Helsby said in a note titled “The $100 Billion Gorilla In the Room.” The commodity-price bust and “stress in Glencore’s share price and debt spreads may spur a review by investors, supervisors and bank management,” while “bank shareholders may pressure managements to reduce exposures,” they said.
Standard Chartered Plc, which has also been battered by the commodity rout, has the greatest exposure to commodity traders among European banks with $1.9 billion of syndicated loans, including more than $1 billion of loans and credit lines to Trafigura Pte Ltd., Sanford C. Bernstein said Oct. 5. Credit Agricole AG has the largest exposure of any bank to Glencore at $841 million, followed by HSBC Holdings Plc with $658 million, analyst Chirantan Barua said.