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Barron’s: Buy the dip with Glencore’s stock? Here’s the case for holding off

There’s nothing like a U.S. Justice Department subpoena for sparking a selloff in a stock. That’s exactly what Glencore shares suffered through last week.

For investors, the decline, which took the stock down by as much as 13% intraday Tuesday, raises the question of whether it’s time to buy the dip. There’s a good case for holding off, especially as this latest development follows other legal problems.

Bears also warn that Chinese demand looks set to weaken, and that the stock seems stretched after a runup over the past couple of years fueled in part by optimism about Glencore’s GLEN, +1.06% production of cobalt, a key component in electric-vehicle batteries.

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