A dramatic loss in Glencore’s market value following a subpoena served on it by the US department of justice last week has, counterintuitively, elicited optimism from analysts. The share price slide — as steep as 14% at one point — followed a request for documents from the commodities giant under US anticorruption and money-laundering laws. The request related to Glencore’s business dealings in the Democratic Republic of Congo (DRC), Nigeria and Venezuela since 2007. It has analysts exalting how undervalued the share is — now significantly cheaper than its peers, they say. The consensus is that the market severely overreacted to a simple request for documents and the shares are now a steal. According to Bloomberg, only one of 28 analysts who rate Glencore has placed a "sell" on it. The majority, 21 analysts, say "buy". Six recommend investors hold the shares. Even Glencore, headed by CEO Ivan Glasenberg, appears to have bought into the hype and two days after the news of the subpoen...

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