Our latest online Coffee- (or tea!) Break stock discussion focused on a new company for Dr. Hermann Stern’s portfolio: Imerys - a multinational mining company specializing in production and processing of industrial minerals.
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As Dr. Stern isn’t an expert in mining and materials, he trusts the financial data: Obermatt Safety rank is low, which, after double checking with Reuters data, turns out to be due to a lot of external financing. The company has a lot of growth, Value is high and the Combined Rank is all green. Hermann believes the company will have even more growth, due to ever higher demand. What makes him doubt his buying decision even less is that Imerys is multinational - they have operations all around the world and this is perfect from the diversification point of view.
Of course, no one knows what the future of mining will look like and it is an important topic as the companies work on innovations in materials production and discovering substitutes for the materials that are sparse and mining of which makes a lot of impact on the environment. The winning point for Imerys here is that the company itself diversifies its production across many different mines and materials which means they are here to stay and grow.