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High-quality, blue-chip FTSE 100 companies don’t generally exhibit huge volatility swings. This is more often a characteristic exhibited by smaller-cap stocks. Mining companies, however, are a whole different ball game. But for me a roller-coaster share price can often present opportunity.
Business in flux
The last couple of years have been miserable for Anglo American (LSE: AAL) shareholders. Multiple profit warnings, loss-making lines of business, and soaring costs have seen its share price fall over 40%.
It got so bad that last year BHP attempted to take over the firm. In the end, the Board decided to back the CEO’s radical turn-around plan, the largest in its 108-year history.
As part of its portfolio simplification, it has already divested itself of its steelmaking coal business for $4.8bn. Later in the year it will receive $500m upon the sale of its nickel…
