RIO - Rio Tinto

Miner · 25 November 2008

DionM said:
Well a drop in RIO was expected when the takeover got canned - when BHP announced the plan, BHP went down, RIO went up.

Must admit - 40% is pretty extreme but in a jittery market that's what happens I guess.

What was RIOs price before BHP's offer? Around $100?

So using some simple maths:
- BHP recently hit 2/5 of it's peak ($20/$50)
- RIO therefore is due to hit 2/5 of it's peak prior to the offer ... e.g. $40 (2/5 of $100).

I'm not touching it with a big stick though ... I already have BHP and OZL (from ZFX days) and have suffered enough with those two. I don't need a hat-trick.

Well done

I heard in ABC radio at 7 PM today (WA) that Rio shares have slumped by 49% and now FTSE records shows it is still down by 35%
That means tomorrow ASX the shares of RIO likely to be flogged and BHP will rise. There will be a mixed chain of reaction for those companies like MIN etc who largely depend on Rio as well

Want to sleep good night
Rio Tinto PLC
Symbol: RIO

Alternative: GB0007188757
Quote
Last 1,587.00
Intraday Chart

Intraday Chart

5 days 1 mth 1 yr 3 yrs 5 yrs 10 yrs
Change -863.00
% Change -35.22%
Volume 37.56 Mil
Day's High 1,710.00
Day's Low 1,405.00
Open 1,620.00
Close 2,450.00
Bid 1,587.00 Bid size NA
Ask 1,588.00 Ask size NA
YTD High 7,167.00 YTD Low 1,958.00
Fundamental Data

P/E 3.60 Market Cap. 23.09 Bil
Earnings/Share 5.76 No. of Shares Out. 1.46 Bil
Dividend/Share 1.03 Exchange London
Current Div. Yield 4.96 Stock Alerts
Prices in British pence
Other financial data in British pounds

Quotes Delayed 15 Minutes. Time of last update 11:19 London

drsmith · 25 November 2008

Up to the minute or possibly two. It could even be every 30 seconds.

http://finance.yahoo.com/q?s=RIO.L

noirua · 25 November 2008

Analysts views in the last 12 months on Rio Tinto:
http://markets.ft.com/tearsheets/analysis.asp?s=AU:RIO

noirua · 26 November 2008

Rio Tinto have plunged 37% in London on news of the dropping of the BHP Billiton bid.

Other stocks: Antofagasta -7%, BHP Billiton +7%, Anglo American +4%, Xstrata +3%, Vedanta -0.2%, BR World Mining IT -4% and Lonmin -2%.

Sean K · 26 November 2008

I anticipate it to be significantly oversold on the open and may finish off lows. Couldn't hang my hat on it, but a high likelihood imo.

amory · 26 November 2008

you know Kennas, that's exactly what I thought. but ...

a) they seem to both be on a trading halt - no quotes BHP or RIO

b) these days our market often reacts in a very blase sophisticated manner: it ignores the violent overnite fluctuations & sure it reacts ... but much more calmly than expected.

only guessing but would expect RIO .. once they let them trade again .. to open between 50 & 55 or slightly below & more or less stay there. the "oversold" you refer to - vicinity 40??? worth watching out for.

FWIW

mattlaw · 26 November 2008

They both (BHP & RIO) start trading at 11am.

http://www.businessday.com.au/busin...s-trade-in-bhp-rio-delayed-20081126-6hnq.html

Cheers

Matt

Sean K · 26 November 2008

Yeah, I'm surprised the current match is $54 ish, I thought high $40s.

A few people might be thinking the same way and will buy on the smashing and sell the bounce, with it ending up in the middle. Maybe.

Sean K · 26 November 2008

Match now $44 so might be a good opportunity if you're game.

Or, it just keeps tanking!

Hope not for buy and hopers....

Nyden · 26 November 2008

kennas said:
Match now $44 so might be a good opportunity if you're game.

Or, it just keeps tanking!

Hope not for buy and hopers....

Looks like it's going to open at 40 - just ouch. I might take a punt and buy a tiny piece :

This is really going to hurt holders

Sean K · 26 November 2008

I'm happy to get out at $43.10, only because I have to go out to dinner.

Good luck if you tried to catch the knife.

It's paid for dinner, with a bottle of nice Grange.

Sean K · 27 November 2008

Could possibly be a little more bounce in the cat. Was 35% a justifiable fall?

I suppose we'll have to wait and see.

That debt they're carrying around looks nasty now. eeeeek!

noirua · 27 November 2008

kennas said:
Could possibly be a little more bounce in the cat. Was 35% a justifiable fall?

I suppose we'll have to wait and see.

That debt they're carrying around looks nasty now. eeeeek!

Whenever a bid is dropped people try to see if there is a problem not mentioned by the bidder. High debt is a bad one, but could there be more.

Those American coal holdings were worth a fortune once, but priced in US$'s in America, they may now be a millstone around the neck of Rio.

Coal is only a lesser factor and BHP pulling out over debt, could mean Rio Tinto are in difficulties.

My guess, a deeply discounted rights issue and placing, unless Chinalco come to the rescue.

Enough of Rio as there is a more important vote taking place at compareshares. [size=+2]Aussie Stock Forums[/size] needs your vote at http://www.thebull.com.au/the_stockies/forums.html

Miner · 27 November 2008

noirua said:
Whenever a bid is dropped people try to see if there is a problem not mentioned by the bidder. High debt is a bad one, but could there be more.

Enough of Rio as there is a more important vote taking place at compareshares. [size=+2]Aussie Stock Forums[/size] needs your vote at http://www.thebull.com.au/the_stockies/forums.html

IMO Rio must be having some serious hidden issues with their debt and assets which got multiplied with low commodity prices. This must have been seen by BHP which triggered the pull out and under confidentiality they will never say so. Interesting situation : two young CEO with lesser experience, global crisis and market expectation . If RIO goes down further I am eyeing on the large companies in St Georges Terrace who have been flexing their muscles on Rio's strength

Garpal Gumnut · 27 November 2008

* There are more things in heaven and earth, Horatio,
Than are dreamt of in your philosophy.
o Hamlet, scene v

I have sold all my holdings and am heavily bought now in RIO.

This chart illustrates an axis, below where RIO falls, we all fall.

gg

noirua · 27 November 2008

Garpal Gumnut said:
* There are more things in heaven and earth, Horatio,
Than are dreamt of in your philosophy.
o Hamlet, scene v

I have sold all my holdings and am heavily bought now in RIO.

This chart illustrates an axis, below where RIO falls, we all fall.

gg

It looks like a tough and rough ride in Rio stock for quite some time. I think it will feel, for stockholders, like a small mining stock diving around between adverse news and Chinese buyers being contemplated.

Just 7 days to go. Yes, to vote for Aussie Stock Forums at compareshares. [size=+2]http://www.thebull.com.au/the_stockies/forums.html[/size]
http://www.thebull.com.au/the_stockies/forums.html

Miner · 28 November 2008

RIO seems to be going between frying fan to fire!!

$35 B net debt and now the rating down grading by credit rating agencies.

File size is more than 450 KB so please visit ASX site

Sean K · 28 November 2008

kennas said:
Could possibly be a little more bounce in the cat. Was 35% a justifiable fall?

I suppose we'll have to wait and see.

That debt they're carrying around looks nasty now. eeeeek!

Still dead catting.

Nice little bounce but was a risky trade.

Just goes to show the seemingly fundamentals do not get in the way of a good trade.

noirua · 2 December 2008

The negatives on Rio Tinto are just too bad now, whether that be iron ore, coal or anything else. Coal is mainly in the States so even the places look negative. Debts were too onerous for BHP and remain a worry. Cutbacks are set to be increasingly massive.

Naked shorts · 2 December 2008

I think it almost serves stuck-up RIO holders right. If they hadn't of keep telling BHP that their offers were "undervaluing" the company, they wouldn't be in this situation.

RIO - Rio Tinto

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