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I think these markets are going to go a little bit lower - but to call cash is always a bit of a cop out so I will go with Anglo American. It’s a little bit of a punt because if it doesn’t hold the R266 level - not that I’m a technical analyst - but if you look at the support that’s been holding around R270 and a little below that for a while. If it gives there then it can easily slip back to R240. I think for long term investors who haven’t got any you can probably add a few at these levels. Also from a trading point of view I’m personally getting the sense that the rand is moving into a very vulnerable phase and Anglo American will at least give some protection against that… It’s diversified. I think Amplats operationally is not in great shape but they contributed a profit. It’s still a useful commodity play in that both forms of coal and iron ore are really the big drivers. De Beers contributed I forget the number offhand - I think US$260million - and Amplats made a contribution but they are still relatively small but there’s a call option on diamonds and platinum. I must be honest I think BHP Billiton is a much better company - but Billiton has held R220 or thereabouts for a while and was probably R220 when Anglo American was R300 so Anglo American has given back quite a bit possibly with concerns around mining rights...

Broker:
Graeme Korner, Alpha Equity

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