Debt-laden commodity producer and trader Glencore Plc, down over 76 percent on a year over year basis, should go private if stock investors don’t see the value, a research note from its private banker, Citigroup, said. This tactic was enough to send the stock up 11.48 percent in London trading. After debuting at 521 pence in 2011, Glencore never challenged its IPO price, sliding to 77 pence over the course of 4 years Citigroup says the company could raise assets by separating its commodity trading and mining business if it were private, correcting the stock’s perceived mis-pricing. “The markets response…
Glencore, Down 85 Percent Since Its IPO, Might Go Private
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.