AN­GLO AMER­I­CAN (AAL) £15.62

Loss to date: 5.4% Orig­i­nal en­try point: Buy at £16.52, 12 July 2018

Shares - - GREAT IDEAS UPDATES -

THE FTSE 100 miner has held up well con­sid­er­ing the neg­a­tive back­drop for com­mod­ity stocks – a brew­ing trade war, falling oil prices, fears about China’s ap­petite for raw ma­te­ri­als and gen­eral con­cerns about a slow­down in global eco­nomic growth.

This back­drop might ex­plain why An­glo ap­pears in the list of most shorted stocks, plus the fact that plat­inum prices have been weak this year, so too rough di­a­mond prices. It is a ma­jor pro­ducer of both com­modi­ties.

We take com­fort in the stock’s re­silience dur­ing trou­bled times. We’re only down 5.4% since ini­ti­at­ing the Great Idea trade in July which is an out­per­for­mance ver­sus the FTSE 100, down 7.3% over the same pe­riod.

The busi­ness is pri­ori­tis­ing debt re­duc­tion to fur­ther strengthen its bal­ance sheet. Jef­feries an­a­lyst Christo­pher LaFem­ina says An­glo has high-qual­ity cop­per pro­duc­tion growth and lots of cost cut­ting op­por­tu­ni­ties.

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