Market Wrap - Stock picks — cash and Anglo American
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Steven Schultz from Momentum chose short term cash and long term Anglo American as his stock picks of the day.
"I'm going short-term cash, a bit of a cop-out I know but I will go bold long-term Anglo American. I think Anglo American is a quality company, diversified miner with a great portfolio and is currently trading at a price to book of 0.6, which is the type of stuff you see in textbooks. PE of about 4 or 5, they've definitely got some demand. Head winds on the horizon but if the world starts to recover I think they are well placed. They also have an amazing negative correlation between volatility and Anglo and so really bad sentiment I believe that's driving the sell-off that we're experiencing at the moment"
"I'm going short-term cash, a bit of a cop-out I know but I will go bold long-term Anglo American. I think Anglo American is a quality company, diversified miner with a great portfolio and is currently trading at a price to book of 0.6, which is the type of stuff you see in textbooks. PE of about 4 or 5, they've definitely got some demand. Head winds on the horizon but if the world starts to recover I think they are well placed. They also have an amazing negative correlation between volatility and Anglo and so really bad sentiment I believe that's driving the sell-off that we're experiencing at the moment"
