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My stock pick for today is actually a stock put - I would be comfortable to short Anglo American. We had results from De Beers on Thursday - currently not listed on our market - but of course Anglo American is still a 45% shareholder in De Beers. Why would I want to short Anglo American at the current level? If you look at De Beers they announced on Thursday that they are going to undertake a $1billion rights issue and that comes hot on the heels of Anglo Platinum another of Anglo’s big shares also having a rights issue. This means unfortunately Anglo American will have to dust off their cheque book in a large way and take up these rights issues that they’ve confirmed they will do and that puts Anglo American at a very disadvantaged position relative to their competitors who’ve in recent days announced dividends - BHP Billiton on Thursday, Rio Tinto and Xstrata. I think this puts Anglo American in a position where it’s very unlikely they will be able to declare a dividend when they release their results next week. I don’t think the market will take too kindly to that so I would therefore be comfortable out of the resources space to short Anglo American.
Broker:
Nerina Visser, Head of Beta Solutions: Nedbank Capital

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