Michael Corcelli, CIO Alexander Alternative Capital recommends Buying Glencore
MIAMI, Sept. 29, 2015 /PRNewswire-USNewswire/ -- Michael Corcelli, energy trader and hedge fund chief investment officer of Alexander Alternative Capital cites General Electric in March 2009 as a parallel example to Glencore today and compares the commodity crisis to the banking crisis. Corcelli states, "Glencore like GE has real assets that are the best in the world. To assign zero value to these assets is just silly."
Corcelli see Glencore as a strong buy and says, "Investec's Laura Lambie has it totally wrong and only time will show that." The balance sheet is solid and the firm has the best assets globally in the commodity business. Corcelli says, "Glencore correctly forecasted the troubles ahead in 2015." Corcelli states, "investors and analyst are getting it completely wrong."
Glencore is one of the only companies in the world today that are in a great position to take advantage of the downturn in spot commodity prices by selling forward their future supply and delivering physical commodities to satisfy their short forward futures positions. The company correctly predicted the downtrend in 2014 and hedged out most of their commodity exposure for the next 2 years.
Glencore is properly positioned for global fiscal stimulus and will be one of the first companies to rally on the news of a Chinese stimulus package. Corcelli compares shorting Glencore to shorting Citigroup at the beginning of March 2009 with the exception that Citigroup had real problems and Glencore is the world best physical commodity trading company. Corcelli says, "Short sellers will get decimated."
The only situation that may bring more pain to Glencore equity shareholders is if commodity prices continue to slide down through the end of 2017. Then and only then investors should start worrying. Given the significant pullback in the stock price, Corcelli sees Glencore as a strong buy. Michael has a bullish macro outlook for the global economy.
About Alexander Alternative Capital:
Alexander Alternative Capital www.alexanderalternativecapital.com is an asset management firm that uses macro economics events to find opportunity and trade expression to generate out sized asymmetrical returns. The firm uses disruptive technology and innovative analysis to find best of breed investments.
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Media Contact:
Michael Corcelli
Alexander Alternative Capital
[email protected]
Phone: (305) 379-4200
SOURCE Alexander Alternative Capital
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