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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerOne of my Chasing Value picks is flying high this morning on no company news. Several months ago, I posted Chasing Value: Anglo American (AAUK) - Inflation hedge & more when the stock was $24.65 a share. Today as I write, it is up over almost 19%, reaching an intra-day high of $38.75.
So what gives? That's a big jump, and there must be something going on. So here is the picture as I see it. Yesterday, the Dow closed down 360 points, followed by Asian markets dropping overnight across the board, with the dollar continuing to sink and oil continuing to rise. Then to top it all off, we wake up this morning to Doug McIntyre's BHP Billiton, world's largest miner, offers to buy rival, so mining stocks are in play. Anyone interested in gold? Silly question I know.
Anglo American is not just a precious metals miner. It is a major player in diamonds, coal and paper; plus it is diversified around the world. Just being outside the U.S. makes it a hedge against the dollar. So if it is possible to fly underground -- then AAUK is doing it!
Disclosure: I own shares of AAUK (still eating my own cooking).
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm.
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Reader Comments (Page 1 of 1)
11-08-2007 @ 9:48PM
Mr. noitall said...
I just checked my AAUK, (which I bought shortly after you wrote about it), I'm up over 27%, Thanks, Sheldon. Maybe I do owe you dinner, but maybe you owe me too, for the advice I gave you, which you probably didn't take. Didn't I tell you to put a stop loss under HD & SBUX awhile bacK? Over all you're doing great on your picks, keep writing the great articles. You're the best writer on BloggingStocks.