LONDON (SHARECAST) - Anglo American shares have been pummelled by miners’ protests in South Africa and a fall in commodity prices. Risks associated with the country have increased spectacularly but a substantial amount of gloom was already priced in. Anglo produces iron ore, manganese, metallurgical and thermal coal, as well as base metals such as copper and nickel. It is a global leader in platinum and diamonds. Anglo’s shares appear to have a lot of negative action factored in. Indeed, mining analysts at Australia’s Macquarie Bank have said that the company was one of its top sector picks over the next 12 months alongside Antofagasta and Rio Tinto. Questor agrees that the shares look cheap – trading on a current year earnings multiple of 10.6. They are, however, 23 per cent lower than when Questor last said buy in February. Until the situation become clearer, hold, the Telegraph says.
Apple shares smashed through the $700 level this week for the very first time, underscoring its status as the most valuable company in history. However, analysts agree – almost unanimously – that the shares have more gains to come. It is very easy for UK investors to buy US shares through their broker at little cost - and Apple shares look likely to move higher. The problem for UK investors is with currency. Last week’s announcement by Federal Reserve chairman Ben Bernanke of a third round of quantitative easing is likely to result in a weakening of the dollar. In order to profit from an investment in Apple, the shares need to move higher at a faster rate than the US currency is falling against sterling. The pound hit a four-and-a-half month high against the dollar this week and it currently stands at about $1.62. Whether sterling can strengthen further, given the weak UK economy, is an unknown. Investors need to take a view on Apple shares and the currency markets before making an investment. Questor is cautious on foreign exchange and, for now, says avoid Apple shares until the dollar-sterling rate is more attractive.