glencore

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A Simple Way to Profit from Glencore's Complex Problems

Glencore

Glencore Plc. is the world's biggest, most important commodities trader, and it is in big trouble, under heavy pressure from all directions.

Too many things have to go right for Glencore to escape. If it can't pare down its debt load fast enough, if it can't raise cash fast enough, if ratings agencies junk it, or if commodities prices keep falling, Glencore could implode - violently.

And thanks to its outsize position and importance to the global commodities market, any meltdown at Glencore would have truly global implications across the commodities and debt markets, derivatives, emerging markets and, of course, U.S. and world stock markets.

Glencore's situation is really complicated, but I'm going to show you a simple way to cash in big when this company heads over the cliff - and takes a large portion of the global economy with it...

Thanks to Glencore, That "Ticking" Sound You Hear Is the World Stock Market

Glencore

It's the biggest commodities-trading player on Earth. And it's in big trouble. I'm speaking, of course, about Glencore Plc.

Here's the truth about how close the company is to the edge of the cliff, how markets would be affected by a Glencore "credit event," the signals that will tell you a crash is imminent...

And how to protect yourself and profit from this company's extreme difficulties.

Glencore's Murky Past and Uncertain Future

The story of the man who started Glencore is a crazy one. But it pales compared to the ongoing story of Glencore itself.

If Glencore can't survive over the next few months, the company's collapse could splatter the markets in a manner that's every bit as gruesome as the Lehman Brothers collapse of 2008.

This is what you need to look for so you'll know Glencore's brakes have failed and it's heading over the cliff, taking global markets with it.

Plus, I'll show you some ways you can make some big money on this potentially horrific crash...

Glencore Collapse Could Be Even Worse Than Feared

A lot of powerful voices have joined me in warning about the potential threat that Glencore Plc. (LON: GLEN) poses to global financial markets. Bank of America, for instance, has published a report on the true size of the fallout. As you'll see in a moment, it's staggering.

But since we talked about Glencore late last month, something insane has happened: The stock has gone up.

But not for any good reason. The company has not righted the ship. The surge is only due to short-sellers covering their positions.

The ugly truth is, the company is still a "shining" example of exactly what's wrong with these markets.

And I fear individual investors will get caught in the mess and wiped out on a stock like this or some of the others around it.

That's why I want to call out the misapprehensions and lies that are causing this "fauxcovery" and show you what's next.

Because it could end up even worse than I thought...

Glencore Stock Price Soars Today After Slashing Zinc Production

zinc mine

The Glencore stock price jumped roughly 15% to 139.70 pence today (Friday) after the company drastically slashed its zinc production.

Zinc prices have fallen 30% in the last few months, prompting the production cut. Today's announcement sent zinc prices soaring more than 11% intraday to $1,850 per metric ton. That was the sharpest gain since at least 1989, according to Bloomberg.

While the Glencore stock price is climbing, the company is not out of the woods...

The Glencore Stock Price Has Much Further to Fall

The Glencore stock price was extremely volatile again today (Thursday) as investors remain concerned about the company's health and its industry prospects.

Shares of Glencore Plc. (LON: GLEN) jumped more than 8% intraday to a high of £99.17. But later in the session, the Glencore stock price gave back all those gains back and fell to £88.72.

Here's why the stock has even further to fall...

Glencore's Collapse Gives Commodities Their "Lehman Brothers Moment"

On Monday, European commodities and mining powerhouse Glencore had a very bad day, and its shares dropped 29%.

Maybe you hadn't heard of Glencore before Monday. But I'd wager that, by the end of this year, everyone will know the name. Just like they know the names AIG, Lehman Brothers, and Bear Stearns.

You see, what's happening with Glencore is an eerie, picture-perfect replay of what happened in the AIG meltdown of 2008.

And what happens next is going to rock the entire market.

We all have to move quickly on this one...

As Another Sector's Sails Lose Wind, Watch This One Barometer

One by one, the bubbles are bursting...

First it was the commodities bubble that blew up in mid-2014, which caused the collapse of energy and commodity stocks -they are now down between 40-80%.

It also caused the end of the corporate credit bubble in high yield bonds and bank loans over the second half of 2014 and into this year.

Then the Chinese stock market, which had gone parabolic early this year, collapsed, sending global markets into a tailspin this summer.

What the Glencore Xstrata Deal Means for the Global Mining Industry

The Glencore Xstrata deal, an all-share merger creating a $90 billion global mining industry powerhouse, would be the sector's biggest and could trigger the busiest year for M&A activity.

The companies announced the deal today (Tuesday) following Glencore's offer last week. Glencore would pay $41 billion for the rest of Xstrata's shares (Glencore already has a 34% stake).

Glencore International is the world's largest publicly traded commodities supplier, and Xstrata is the world's fourth-largest metals and mining company. A Glencore Xstrata deal would create a company rivaling global mining industry leaders BHP Billiton Ltd (NYSE ADR: BHP) and Rio Tinto Plc (NYSE ADR: RIO).

"Glencore being such a dominant trader and marketer of commodities, and Xstrata being such a strong operator of difficult assets, I think it creates enormous value," Prasad Patkar from Platypus Asset Management Ltd. told Bloomberg News. "On one end you have great mining expertise, on the other you've got great marketing expertise. Two and two together should make five."

The new combined entity would be more diversified than other global commodities players, with copper and coal being its biggest earnings drivers. It would be the world's biggest coal exporter for power plants and the top integrated zinc producer.

The new mining industry giant also will go on the hunt for smaller businesses, and encourage other powerful players to do the same.

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