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#SaxoStrats - Why we're taking a big risk with Lonmin

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In his latest #SaxoStrats trade Saxo Bank's Head of Equity Strategy Peter Garnry talks us through one of his riskiest trades ever; in Lonmin, the world's 3rd largest platinum producer. 

The mining firm was almost bankrupt at the end of last week, shares are down around 90% YTD and demand for platinum is low but Peter believes there's a glimmer of hope. A rights issue could secure the balance sheet and with platinum trading at a huge discount to gold there's the opportunity for a mean revert.

Buy: At market

Trailing Stop: 6.38 pence 

Steps: 1.14 pence